Abstract: In order to reduce the production cost of laser displacement sensor, we put forward a design method of a new type of laser displacement sensor system. Based on the triangle measurement principle, the design uses the CCD single board computer as the photoelectric detector, utilizes the pinhole optical system to replace lens. We discussed the method to determine the important parameters of the senor system according to the characteristics of the pinhole optical system, and wrote the image processing algorithm for extracting displacement information of the target image, so as to achieve non-contact displacement measurement. Finally, we set up a set of this new type of experimental system of laser displacement sensor to carry on displacement measurement experiment, and the results show that this system can meet the measurement requirements of 50 mm range and 1 m precision.