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A novel design of a polarization filter based on photonic crystal fiber (PCF) is proposed in this paper. With the introduction of a gold-coated air hole, the resonance strength is much stronger in y-polarized direction than in x-polarized direction at some particular wavelengths, which is due to the metal surface plasmon effects. At the wavelength of 1.31 μm, the loss of y-polarized mode is 2138.34 dB/cm while the loss is very low in x polarization. Furthermore, the loss peak can be flexibly adjusted from the wavelength of 1.26 to 1.56 μm by changing the thickness of a gold layer, and the loss in y polarization can be kept above 1200 dB/cm. The significant loss in y polarization makes this PCF a good candidate for developing a polarization filter with high performance. [ABSTRACT FROM AUTHOR]