The optical displacement sensor (2) includes a reflecting surface (4) and one or more
diffraction gratings (6) that, together with the reflecting surface, each define an interference arrangement. The reflecting surface (4) is movable relative to the
diffraction gratings (6), or vice versa. Light from a
light source (8) propagates through the interference arrangement and produces an interference pattern at each set of photodetectors (10). Each interference pattern depends on the separation between the reflecting surface (4) and each
grating (6). A collimating optical arrangement (14) at least partially collimates the light between the
light source (8) and the
diffraction grating (6). For the or each interference arrangement, when the reflecting surface (4) or
diffraction grating (6) is in a zero-displacement position, the
optical path length L of light propagating between the
diffraction grating (6) and the reflecting surface (4) satisfies the following relationship to within 20% of j, where n is an integer, and Tz is the Talbot length defined as follows: λ is the
wavelength of the light, and p is the
grating period of each
diffraction grating (6): Alternatively, L is within 20% of p, where m is an odd integer. Additionally or alternatively, the optical displacement sensor (34, 112) may include two or more diffraction gratings (44, 46, 116) and may be configured to provide each separate
light beam (62, 64, 132) to each grating (44, 46, 116) using a beam separation arrangement (48, 126) or multiple
light source elements.