Al need has arisen in research on micro machines for mi cro position sensors which are less affected by scaling laws than existing capacitive sensors. This paper de- scribes the development and operation of a non-contact inductive position sensor for use in micro magnetic bearings. As the sensor footprint area, in the micro machines being considered, will be less than I mm square the sensor coil inductances and impedance levels are small, and the parasitic and demodulator input capacitances begin to have a major influence on the transducer op- eration. To minimize the loading effect of these capac itances wideband current to voltage (I-V) converters have been introduced to match the output of the sen sor coils to the input of the signal conditioner circuit. Test results for these I-V converters are presented. Also overall test results of the position transducers showing transducer linearity and sensitivity for a range of sensor coils are presented.