In this paper, we report a novel algorithm based on phase displacement, which supplements conventional TOF methods for distance measurement using an ultrasonic wave. The proposed algorithm roughly measures the distance between the transmission part and the receiving part by using the initial TOF. Thereafter, the precise distance is determined by measuring the phase displacement value between the synchronizing transmission signal and the signal obtained at the receiving end. A distance measurement experiment using a micrometer was performed to verify the accuracy of the ultrasonic wave sensor system. We found that the mean errors from the one adopting the distance measurement algorithm based on phase displacement varied from a minimum of 0.03 mm to a maximum of 0.09 mm. In addition, the standard deviation varied from a minimum of 0.04 mm to a maximum of 0.07 mm, thus giving a precision of ${pm}0.1$ mm.