This paper describes the development of a nano-positioning system for nanoscale science and engineering. Conventional positioning systems, which can be expensive and complicated, require the use of laser interferometers or capacitive transducers to measure nanoscale displacements of the stage. In this study, a new self-displacement sensing (SDS) nano-stage was developed using mechanical magnification of its displacement signal. The SDS nano-stage measured the displacement of its movement using a position-sensitive photodiode (PSPD), a laser source, and a hinge-connected rotating mirror plate. A beam from a laser diode was focused onto the middle of the plate with the rotating mirror. The position variation of the reflected beam from the mirror rotation was then monitored by the PSPD. Finally, the PSPD measured the amplified displacement as opposed to the actual movement of the stage via an optical lever mechanism, providing the ability to more precisely control the nanoscale stage. The displacement amplification process was modeled by structural analysis. The simulation results of the amplification ratio showed that the distance variation between the PSPD and the mirror plate as well as the length L of the mirror plate could be used as the basic design parameters for a SDS nano-stage. The PSPD was originally designed for a total travel range of 30 to 60 mm, and the SDS nano-stage amplified that range by a factor of 15 to 25. Based on these results, a SDS nano-stage was fabricated using principle of displacement amplification.