This paper presents the design and development of a novel, linear, eddy current-based noncontact angle sensor with 360° range. Although the eddy current proximity sensors are known for high reliability, resolution, and insensitivity to moisture and oil, the approach has not been exploited to develop full-circle range angle sensors with such features. The proposed sensor consists of a rotary conducive hollow tube (e.g., made of aluminum) part and a stationary part with four identical flexible coils. The tube has a simple but special groove. The position of the groove modifies the value of the inductance of the stationary coil as a function of the sensing angle. The design is such that the inductance of each coil varies linearly for a specified range of the angle. From this piecewise linear characteristic, an output that is linear for the full-circle range is obtained using a simple yet effective algorithm. A suitable signal conditioning circuit is developed to obtain an output that is proportional to the change in the inductance of the coil. In order to optimize the design, first, the sensor structure was studied using finite-element analysis. Then, a prototype of the sensor was built and tested in the laboratory. The prototype sensor has a resolution of 0.08° and a maximum nonlinearity of 0.25%. The possible sources of error of the sensor have been analyzed and quantified. The sensor has no electrical contact to the rotary part and its output is immune to moisture, dust, and oil. © 1963-2012 IEEE.