A low polarization-sensitive all-fiber wavelength measurement system using a twisted macro-bend fiber edge filter together with polarization-insensitive (PI) 3-dB coupler is presented. Eliminating the polarization-dependent loss (PDL) is essential when macro-bending single-mode fiber is utilized as an edge filter. A new bending configuration to eliminate the PDL of a fiber edge filter is proposed in this letter by twisting the fiber by 90° between two bending sections with equal length. The PDL of this configuration retains a low value even while the bending length is increased to achieve a steeper response for the edge filter. This configuration together with a PI 3-dB coupler makes the system to have very low polarization sensitivity and as a result high wavelength accuracy can be achieved. © 2008 IEEE.