The NanoWave Scanning Probe Position Encoder (SPPE) is a real-time position measurement device developed for next generation nano-scale positioning applications. The performance level sought is: 1nm precision over 300mm, 0.01nm resolution, and a detection speed of 5-10 m/sec all simultaneously. These devices use holographic gratings as reference scales in conjunction with Scanning Probe Microscopy (SPM) technologies, which may include focused beams as probes, and a patented phase-tracking detection method. The SPPE sensor probe is oscillated near its resonant frequency above the (100nm - 300nm period) holographic grating surface while it scans the grating across the grating land and grooves. This generates the output with high-order harmonics of the probe oscillation, which contain quadrature signals corresponding to the position information. The peak-to-peak amplitude of the probe scanning range at the resonant frequency needs to be only a little larger than a grating period for stable gap distance control, high precision oscillation control and low heat generation. Furthermore, high probe oscillation frequency allows decoupling the position measurement in X and Z directions, maintaining enough bandwidth in each axis measurement, leading to a unique multi-axis position measurement capability.