Abstract: To solve the low resolution of embedded displacement sensor for large module gear, this paper proposes a cascaded embedded high resolution time-grating displacement sensor. The cascade effect enables the optimized embedded time-grating angular displacement sensor to group at a regular spatial angle, which means the secondary traveling wave signal and the primary traveling wave signal are superposed. The displacement of the secondary sensor unit signal within one pitch is twice that of the primary sensor unit signal, improving the resolution of the time-grating angular displacement sensor. After an analysis of the measuring principle of the time-grating angular displacement sensor with magnetic field, a mathematical model of the cascade embedded time-grating angular displacement sensor is built. After a finite element simulation, the experimental results are identical with theoretical calculations and more clock pulse sequences inserted to displacements improve the resolution. An experimental platform is built and results show the resolution of secondary sensor unit improves by 43% compared with that of primary sensor unit, and the stability of the secondary sensor unit is 75% higher than that of the primary sensor unit.