The arrayed waveguide grating (AWG) based on silicon on insulator (SOI) is widely used in the fiber Bragg grating (FBG) demodulation system due to its compact size and high-efficiency demodulation performance. We designed, simulated and fabricated a high-performance and integrated 24-channel 200 GHz AWG. The test results show that the AWG has a good transmission spectrum, with the insertion loss of approximately 1.77-5.3 dB, the crosstalk of about -20 dB, and the 3 dB bandwidth of approximately 2 nm. The performance of FBG demodulation system es-tablished based on this AWG was tested. The experimental results indicate that within a dynamic range of 1.14 nm, the demodulation accuracy of this system is 16.69 pm, and the wavelength resolution is 5 pm. The experimental results prove that FBG demodulator based on the AWG is an ideal choice for the fiber Bragg grating sensing system.