In this paper we present a high power, polarized 2 μm Thulium-doped fiber laser with high beam quality. Such laser systems are ideally suited for the processing of plastic materials which are highly transparent in the visible and 1 μm wavelength range and for the pumping of laser sources for the mid-IR wavelength region. For most applications polarized lasers are beneficial, as they can be easily protected from back reflections and combined with other laser sources or power scaled by polarization combining. The Tm-doped fiber laser is pumped in an all-fiber configuration by using a fiber coupled pump diode emitting around 790 nm. This pumping scheme allows the exploitation of the crossrelaxation process to populate the upper laser level. A compact and robust laser configuration was achieved by using an all-fiber configuration with single mode fibers and fiber Bragg gratings (FBG). Different FBG pairs with wavelength around 2 μm were tested. To achieve stable polarized output power the fibers with the FBG were 90° twisted at the splices. Stable linearly polarized output power up to 38 W with an extinction ratio of up to 50:1 was observed. With respect to the diode output power an optical-to-optical efficiency of 51 \% was reached with a correspondent slope efficiency of 52 \%. The emission linewidth at maximum power was measured to be < 0.3 nm which is well suitable for Ho-laser pumping. First tests of the precise processing of highly transparent plastic materials demonstrate the potentials of these laser systems.