The invention discloses a pulse micro displacement sensor and a displacement measuring method thereof. The sensor comprises an infrared light source, a moving grating, a fixed grating, a first infrared photoelectric multiplier, a second infrared photoelectric multiplier, a first comb-like electrode, a second comb-like electrode, an upper-layer capacitor flat plate, a lower-layer capacitor flat plate, a cantilever beam in the shape of a Chinese character hui of the moving grating, a processing module for calculating the displacement according to the photoelectric signal and a current drive module for conveying current to the comb-like electrodes and the capacitor flat plates. When the interval of the two layers of the gratings is precisely controlled within the wavelength scale of 1/5 according to a special condition in a Wood abnormal phenomenon, the parameters such as period and duty cycles of the gratings are regulated; when the two layers of the gratings move, reflected light generates a pulse type change phenomenon which has slope higher than that of common Wood abnormal light intensity change flat curve, so that the tiny displacement signal can be greatly amplified to measure the displacement. Moreover, the dynamic range is expanded, the miniaturization is realized, and the application prospect in the military filed is wide.