A magnetic sensor utilizing direct magneto-optic field coupling in an optical fiber Bragg grating (FBG) is experimentally demonstrated. The FBG鈥檚 cladding is etched to expose the propagating evanescent light to the fiber鈥檚 surroundings. The etched FBG is surrounded with iron oxide nanoparticles and placed in a magnetic field perpendicular to the fiber. Measurements demonstrate that the 位B shifts nonlinearly as a function of magnetic field, i.e. comparable to the magnetization versus magnetic field behavior of the nanoparticles measured by a SQUID magnetometer. This direct manipulation of light with magnetic fields provides an approach to develop future sensors relying on electromagnetic interactions.