An all fiber magnetic field sensor with peanut-shape structure based on multimode fiber (MMF) is proposed and experimentally demonstrated. The sensing structure and magnetic fluid (MF) are both encapsulated in capillary, and the effective refractive index of MF is affected by surrounding magnetic field strength. The measurement of magnetic field is realized by observing the wavelength drift of interference peak. The transmission spectrum generated by Mach-Zehnder interferometer (MZI) includes core-core mode interference and core-cladding mode interference. Experimental results demonstrate that the core-cladding mode interference is sensitive to magnetic field, and the magnetic field sensitivity is 0.047 8 nm/mT. In addition, two kinds of interference dips are sensitive to temperature, and the sensitivities are 0.060 0 nm/°C and 0.052 6 nm/°C, respectively. So the simultaneous measurement of magnetic field strength and temperature can be achieved based on sensitivity matrix.