High-precision　eddy　current　sensors　for　displacement　and　thickness　measurement　play　a　crucial　role　in　vital　fields　such　as　semiconductor　manufacturing,　precision　optics,　and　aerospace.　As　precision　manufacturing　advances　towards　digitalization　and　intelligence,　the　performance　and　functionality　of　these　sensors　face　increasingly　stringent　demands.　In　this　review,　the　analytical　and　equivalent　circuit　model　of　eddy　current　detection　are　analyzed　from　the　basic　structure　and　working　principle,　obtaining　the　application　branch　of　displacement　and　thickness　measurement.　The　optimization　of　configuration,　signal　processing　circuitry,　and　temperature　compensation　technology　is　reviewed　for　the　improvement　of　core　performance　indicators　such　as　range,　resolution,　and　thermal　stability.　The　challenges　faced　in　practical　applications,　including　the　suppression　of　lift-off　effect,　multilayer　film　thickness　measurement　and　edge　detection,　are　identified.　Finally,　the　development　direction　of　eddy　current　displacement　and　thickness　sensors　is　envisioned.