A continuously tunable erbium-doped fibre laser (TEDFL) based on tunable fibre Bragger grating (TFBG) and a three-port optical circulator (OC) is proposed and demonstrated.The OC acts as a lO0%-refiective mirror.A strain-induced uniform fibre Bragger grating (FBG) which functions as a partial-refiecting mirror is implemented in the linear cavity.By applying axial strain onto the TFBG, a continuously tunable lasing output can be realized.The wavelength tuning range covers approximately 7.0Ohm in C band (from 1543.6161 to 1550.3307nm).The side mode suppression ratio (SMSR) is better than 50 dB, and the 3 dB bandwidth of the laser is less than 0.01 nm.Moreover, an array waveguide grating (AWG) is inserted into the cavity for wavelength preselecting, and a 50km transmission experiment was performed using our TEDFL at a 10 Gb/s modulation rate.