This paper presents the dynamic response of an air-bearing displacement sensor for on-machine surface form measurement of micro structures. The on-machine measurement system has some merits in terms of measurement efficiency and re-machining for error compensation after measurement. On the other hand, the performance of the contact type measurement system based on stylus methods is dominated by the dynamic characteristics of the system because the system is subject to random vibrations of the machine tool including the spindle during measurement. Therefore, the dynamic response of the system is useful for analyzing the mechanical vibrations of the practical on-machine measurement system. In this paper, the equation of motion for the air-bearing displacement sensor to the excited input displacement is derived and the displacement behavior of the system by using a PZT actuator is investigated within certain frequency ranges experimentally for identifying the dynamics of the system.