Based on the nanometer timegrating displacement sensor with double row structure, a novel nanometer timegrating displacement sensor with single row differential structure is proposed in this paper. An alternating electric field with stable motion is constructed to generate a travelling wave signal to overcome the cross interference and installation existing in the double row structure. Differential induction electrodes are employed to pick up the signals, which can effectively eliminate the common mode interference. Micronano fabrication technology is adopted to fabricate a prototype sensor with single row differential structure based on multilayer thin films, and the performance of the prototype sensor is evaluated. The experimental results indicate that the prototype sensor achieves a value of ±150 nm measurement accuracy within 200 mm measuring range. Comparing with the double row nanometer timegrating sensor, the measurement accuracy, signal stability and antiinterference ability of this sensor are greatly improved. In addition, the size of the sensor is reduced while the effective measuring range is extended. Therefore, the novel nanometer timegrating sensor has more application prospects in the process of commercialization.