The development of packaging for an underwater acoustic sensor is a more complex task than package design for a typical microelectronic device because of the need to simultaneously protect the device from the environment while allowing interaction with it. The goal of this work is to create an underwater acoustic sensor package that will allow sound transmission to the sensor while keeping out moisture and salt ions. A bio-inspired package, based on the hearing mechanisms in fish and other aquatic animals, has been developed for this purpose. The package will ensure reliability in the underwater environment while not interfering with the transmission of sound. The sensor design incorporates magnetostrictive iron-gallium (Galfenol) nanowires. Arrays of cilia-like nanowires mechanically respond to incoming sound waves, thus creating magnetic fields that are sensed by a GMR sensor. The package is designed to contain the nanowires in a fluid medium, leaving them free to move. Materials matching the acoustic impedance of seawater are incorporated to allow sound to penetrate the package. Acoustic properties of various materials were investigated using scanning acoustic microscopy for this application. A fabrication process for the package is presented. The fabrication incorporates a room temperature soldering process that will not harm the sensor during the bonding of package components.