This paper presents a novel fabrication method of PZT micro-fibers using activated carbon template with the aim of manufacturing PZT/epoxy 1-3 composites. Porous carbon was first prepared by chemical activation technology. The pore diameter formed in an activated carbon template is of several microns and lengths are up to several millimeters. These pores provide a basic platform to grow PZT fibers inside. Then the carbon template is removed at high calcination temperatures to form PZT micro-fibers. Subsequently, thermo-gravimetric analysis (TG) and differential scanning calorimetry (DSC) were performed to analyze the process of removing the template as temperature changing. For manufacturing 1-3 piezo-composites, the PZT fibers were carefully aligned in one direction and infiltrated by epoxy resin. Based on the observation from X-ray diffraction (XRD) the fibers show a pure pervoskite phase at low sintering temperature of 950°C. The fibers embedded orderly in the epoxy matrix are smoothly distributed and straightened which were observed using a scanning electron microscopy (SEM). The diameter of fibers is around several microns with the length up to a few millimeters, matching well with pores in the template. The new micro-fiber composite material can be potentially used in a sensor with high directivity in structural health monitoring.