To meet the urgent demand for precise two-dimensional positioning technology in the fields of semiconductor industry and aerospace, a planar two-dimensional time grating displacement sensor based on the orthogonal double traveling wave magnetic field is proposed in this article. The sensor consists of a stationary part and a movable part. The stationary part is composed of a magnetic conductive base and the excitation coils arranged in the x and y directions. The movable part is composed of the magnetic conductive base and the induction coils arranged in the x and y directions. An orthogonal traveling wave magnetic field is generated when the sine and cosine excitation signals are applied to excitation coils. The displacement values in x and y directions are obtained by calculating the inductive electromotive force. In this article, the working principle and structure of the sensor is firstly introduced. Then, the electromagnetic field simulation of the sensor model is carried out. According to the simulation results, the error is traceability analyzed and the sensor structure is optimized. Finally, the sensor prototype is fabricated by the printed circuit board technology, and the corresponding electrical system is designed for experimental verification. Results show that the sensor can realize two-dimensional displacement measurement, and the measurement range is up to 160 mm×160 mm. The peak to peak value of displacement error in the x-direction is 32. 8 μm, and the peak to peak value of displacement error in the y-direction is 34. 5 μm within a pitch.