An interferometric demodulation system for a large capacity fiber grating sensing network is provided by the present disclosure, comprising: a continuous light output end of the nanoscale wide-spectrum light source is connected to an input end of the pulse optical modulator, an output end of the reference grating is connected to an input end of the grating array sensing network, and a third communication end of the optical circulator is connected to an input end of the optical amplifier, an output end of the optical amplifier is connected to an input end of the Mach-Zehnder interferometer, three-channel signal output ends of the Mach-Zehnder interferometer are respectively connected to signal input ends corresponding to the embedded signal processor through the photoelectric converter, and the embedded signal processor controls the heating device to control a temperature of an any one of interference arms of the Mach-Zehnder interferometer.