This Letter reports on an etched fiber Bragg grating (eFBG) sensor coated with reduced graphene oxide (RGO) having enhanced sensitivity for physical parameters such as strain and temperature. The synergetic effect of the changes in grating pitch and refractive index of RGO with change in temperature or strain enhances the shift in Bragg wavelength (λB). The RGO-coated eFBG sensors exhibit a strain sensitivity of 5.5 pm/μϵ (∼5 times that of bare fiber Bragg gratings) and temperature sensitivity of 33 pm/°C (∼3 times that of bare fiber Bragg gratings). The resolutions of ∼1 μϵ and ∼0.3°C have been obtained for strain and temperature respectively, using RGO-coated eFBG sensors.