Our paper presents the first application of a fiber-optic interferometric sensor to real-time monitoring of dynamic pressure and temperature in the exhaust pipe of an automotive engine. The sensor is based on highly birefringent fibers, where the phase shifts between two pairs of polarized modes are induced by two measurands and decoded simultaneously using a coherence-addressing principle. The system allows for unambiguous measurement of pressure and temperature changes in the range of 140 mbar and 100 degrees C, and with accuracy of 2 mbar and 0.4 degrees C, respectively, at a sampling rate up to 200 kHz. Preliminary testing of the sensor provided data that allow determining flow of exhaust gases and giving information about mass emission. Additionally, the dynamic measurements of pressure make possible diagnosis of engine operation.