By proper choice of materials, dimensions and circuit parameters, it is possible to design a linear displacement transducer, or extensometer, to have zero net thermal drift over any given temperature range. The chief limitation is the inability of wires and insulation to withstand very high temperatures. An extensometer has been designed and tested which could theoretically measure displacements up to 150 mm with a maximum error of ±0.15 mm caused by thermal effects over the temperature range from 0° to 1000°C. Experimental limitations prevented testing at temperatures higher than 500°C, but measured and theoretical results were in good agreement over that range. The principles involved in the temperature compensation will be discussed