Higher precision, non- destructive and handy are necessary to the displacement measurement. Astigmatism effect in orthogonal cylindrical lenses is utilized to measure object displacement. In paraxial approximation, matrix methods for Gaussian ray model are used to trace analysis. In addition, Zemax is adopted to simulate the behavior of the model. Then, the displacement measuring system is set up.At the same time,measuring range and resolution of the system are discussed briefly. The result of the experiment indicates an applicable measuring range of 5.6 μm with a highly accuracy of 200 nm for displacement measurement. The technique provides a new noncontract, highly accuracy method for displacement measurement.