In this paper, a new technique and theory are proposed which correct the orientation (inclination of a vertical axis) of a cylinder in vertical-micro positioning device. An algorithm for determining the orientation of the cylinder with a pair of displacement sensor units is derived and two types of the correction methods are described. To assess the performance and efficiency of the developed correction technique, the compensation errors originated from the correction algorithm and the machined characteristics of cylinder surface are evaluated from the geometrical considerations and the statistical techniques. Based upon the evaluation results, the maximum compensation error is estimated for the orientation of cylinder and the optimum correction technique is derived.