A novel temperature- and strain-independent optical fiber torsion sensor based on a phase-shifted fiber Bragg grating (PSFBG) inscribed by the line-by-line (LbL) technique in a standard single-mode fiber with a femtosecond laser has been proposed and experimentally demonstrated. The strong birefringence created by the LbL inscription technique leads to the significant polarization splitting of the transmission peak of the PSFBG. By simply monitoring the variation of the amplitude difference between the two polarization-peaks, the fiber torsion angle and the fiber torsion direction can be simultaneously deduced without temperature and strain confusion. The torsion sensor exhibits a high torsion sensitivity of up to -1032.71 dB/(rad/mm), with the distinct advantages of low manufacture cost, small dimension (just ∼1.72mm), and extremely robust and simple structure, which make it very attractive for practical applications. To the best of our knowledge, this is the smallest torsion sensor ever reported.