As active magnetic bearings and suspensions are position servomechanisms, accurate measurement of the position of the suspended rotor is very important. The various position sensing devices that have been in use are: optical, inductance, capacitance, and eddy current transducers. In this paper the optical measurement technique is revived using modern, solid-state infrared devices. In general, this method results in simplicity of sensor interface, adequate sensitivity and linearity, and cost effectiveness. This article describes the mechanical design feature of the electro-optics, the sensor circuitry, and the transfer characteristics of the sensor subsystem. Results of actual performance of the sensor in an electromagnetic bearing are also given.