Eddy current displacement sensors are well-suited for measuring displacement, position, and gaps inside internal combustion engines under real operating conditions. Miniaturized eddy current sensors have been customized and installed at various engine locations, such as between the piston and cylinder wall, to measure thermal and mechanical stresses during normal running and motored operation. The non-contact sensors provide reliable data even in harsh engine environments with high temperature, pressure, vibrations, and contaminants.