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A displacement measurement sensor, capable of sub-millimeter resolution, using millimeter-wave interferometry has been developed. The sensor operates at 37.6 GHz and is realized using both microwave integrated circuits and monolithic microwave integrated circuits. It has been used to accurately measure the displacement of metal plate location and water level. A resolution of only 0.05 mm is achieved. A maximum error of 0.3 mm is also attained without correction for the nonlinearity of the phase-detection processor and agrees well with the theoretical calculation.