Introduction: Cancer has become a major economic and societal burden. The National Cancer Registry of Malaysia (NCR) estimates that one in four Malaysian (1:4) will develop cancer by the age of 75. This project aims to develop a prototype named “Laser ablation needle” for tissue cauterization and percutaneous hyperthermia cancer therapy. Our ultimate goal is to develop a highly flexible, operator-friendly and cost-effective laser ablation needle for tissue cauterization and hyperthermia cancer therapy, hence to improve the overall cancer survival rate and quality of life among the cancer patient population. Methods: The laser ablation needle is a closed loop opto-electronic control system, consists of a 2 mm Fiber Bragg Grating (FBG) – optical fiber temperature sensor, a laser driven hot needle and a micro-controller. Based on real-time temperature input from the FBG sensor, the micro-controller can perform a dynamic PID control on laser intensity for a safe hyperthermia treatment. In the fabrication, a medical grade optical fiber with a diameter of 800 μm was used for laser delivery. The optical fiber was embedded inside a biocompatible resin-made needle and connected to a 450 nm high power blue laser diode. The FBG temperature sensor was incorporated in the needle for real-time temperature monitoring and control. Focal hyperthermia produced by the laser-driven hot needle was conducted on ex-vivo bovine liver. Results: The rise in temperature was recorded by increasing laser power. The temperature profile was obtained at each depth. Irreversible thermal denaturation during irradiation was captured. Conclusion: These preliminary results suggest that this technique can be applied safely and effectively for cancer treatment. The developed prototype comprised of the diode laser showed that it can deliver its energy via simple optical fiber. This laser is cheaper and much smaller than the conventional high power lasers used in other studies.