Many oscillator/demodulator type signal conditioners for use with half bridge LVDT, MicroStrain® DVRT® and non-contacting variable reluctance/eddy current sensors have relied on the use of two coils arranged in a differential manner to amplify position and to cancel temperature effects. However, this method of compensation is only effective when both coils experience the same temperatures simultaneously. In practice, thermal gradients commonly occur across sensing coils, resulting in a difference in the sensing coil’s resistance as compared to the reference coil. The DEMOD-DVRT® -TC Temperature Compensated Signal Conditioner overcomes this limitation by injecting both AC and DC excitation into the coils, and demodulating the AC component of the bridge signal separately from the DC component. The differential signal produced by the bridge in response to the DC excitation is amplified and subtracted from the demodulated (and amplified) AC response. The resulting output is free from temperature gradient errors. Linear plunger type and non-contacting inductive sensors are now available in very small diameters (<1 mm), and single coil sensors possess nearly 1:1 body length-to-stroke ratios, without sacrificing thermal stability.