In this paper, we propose a temperature-sensing scheme utilizing a passively mode-locked fiber laser combined with the beat frequency demodulation system. The erbium-doped fiber is used in the laser ring cavity to provide the gain and different lengths of single-mode fibers inserted into the fiber ring cavity operate as the sensing element. Different temperature sensitivities have been acquired in the experiment by monitoring the beat frequency signals at different frequencies. The experimental results indicate that the beat frequency shift has a good linear response to the temperature change. The sensitivity of the proposed sensor is about −44 kHz/°C when the monitored beat frequency signal is about 10 GHz and the ratio of the sensing fiber to the overall length of the laser cavity is 10 m/17.5 m, while the signal-to-noise ratio (SNR) of the monitored signal is approximately 30 dB. The proposed temperature-sensing scheme enjoys attractive features such as tailorable high sensitivity, good reliability, high SNR, and low cost, and is considered to have great potential in practical sensing applications.