A simple actively mode-locked fiber ring laser is proposed and successfully demonstrated to generate dual-wavelength picosecond pulses with close wavelength spacing using one Bragg grating in standard single-mode fiber. The proposed laser can be made to operate in stable dual-wavelength at room temperature, due to the birefringence characteristic of the FBG induced by transverse strain. Transverse strain loading on the FBG allows the wavelength spacing to be controlled. Generation of stable dual-wavelength pulses with a pulsewidth of 212–234 ps and a tunable wavelength separation from 0.2 to 0.44 nm at a pulse rate of 1.05 GHz was demonstrated.