This paper is described a development of an optical fiber displacement sensor. The optical fiber sensor using an intensity modulated measures the displacement between target and sensor. A prototype sensor is composed of a transmitting part, a receiving part and a signal processing circuit. The experiment was conducted not only the sensor performance but also factors that affect intensity. The main performance of this sensor is resolution of 0.37 ㎛ and the non-linearity 0.7％ FS and the dynamic bandwidth of about 6.3 kHz. As a result of rotation test, the prototype sensor showed an equivalent performance to a commercial eddy current sensor.
