The measurement accuracy is easily influenced by non-uniformity of coil wiring and variation with time, which is originally because of the use of enameled coils in traditional time grating angular displacement sensor. For this, a new time grating angular displacement sensor based on PCB(Printed Circuit Board) technology was proposed. By arranging particular shapes of excitation and induction coils in different layers of PCB baseboard, the sensor formed two identical sensor units and they were of quadrature positions in the circle; when excitation coils of two sensor units were switched on two-phase time-quadrature AC respectively, magnetic field was precisely restrained by magnetic stator base and magnetic rotor with specific teeth and slots to make induction coils of both sensor units in series output sine sense signal with primary phase varying with rotors rotation; finally, precise angular displacement measurement was achieved by interpolating high-frequency clock pulse into primary phase. The sensor was modeled and simulated by using FEA(Finite Element Analysis) software. According to simulation models, the sensor object was made and confirmatory experiment was carried out. Frequency and source of angular displacement measuring error were analyzed in detail. Ultimately, the measurement error of the new time-grating angular displacement sensor is within -2.82″~2.02″ in the whole scale after calibration and compensation. Theoretical derivation, simulation analysis and experiment verification all indicate that the sensor can not only achieve precise angular displacement measurement, but also it can double the resolving ability of displacement measurement from the signal source when the space pole distance and signal quality of excitation and induction coils are unchanging. The stable structure is easy to be achieved and especially applied to industrial sites in poor environment.