We demonstrate an in-line polarization controller based on a hollow optical fiber filled with a nematic liquid crystal by fabricating thin-film electrodes on the cladding of a fiber. The polarization controller consists of three control sections with fixed optic axes, which operate as phase retarders. The phase retardation in each section is controlled by the magnitude of the applied electric field. The full wave retardation voltage of the polarization controller is ∼85 V.