In this study, a novel in-fiber optofluidic trace ethanol sensor is proposed firstly. The microstructured hollow fiber (MHF) with a suspended core is a key part of the overall device which is integrated with graphene oxide (GO). The GO can be uniformly trapped on the whole surface of the suspended core in the MHF by using evanescent field inducing method. When trace microfluidic ethanol passes through the in-fiber device, the light intensity of the suspended core can be significantly modulated through the interaction between the GO on the core and ethanol. The device presents an excellent linearity on-line response with an average sensitivity of 0.16 dB/% with linear regression equation of y = 0.16x + 25.989. In general, this compact optofluidic in-fiber trace ethanol sensor can be utilized as for on-line detection of trace amounts of ethanol in special environments.