The OMM(On-Machine-Measurement) system has many advantages compare to conventional measurement in the way the time and cost. But, the sensor suitable to OMM system is restrictive use. Touch trigger probe sensor has long time for measurement and non-contact sensor has directional demerit. Because the long mechanical parts such as gear and lead screw for pump, injector and machine tools has big and heavy, unclamp and transferring for measurement in machining process is very difficult. This paper presents a development of ultra miniature eddy current displacement sensor with 3 axes for On-Machine-Measurement system. The accuracy of the sensor is experimentally proved in the grinding machine. In experimental results, the accuracy has under ${pm}5;{mu}m$.