Abstract: This paper addresses the issues of poor reliability and stability, as well as frequent damage, associated with domestically produced displacement sensors used in excavation equipment.Based on an analysis of the sensors' installation position and working principle, the causes of sensors failure were identified.A comparative analysis with imported sensors was also conducted. Improvements were made to the domestic displacement sensors from multiple aspects, followed by experimental verification. The results showed that the improved sensors operated more stably and reliably, with a significantly longer service life.