The authors investigated an overhead shuttle (OHS) system for automatic transferring the liquid crystal display (LCD) panels. The constructed tracks of OHS system include the linear and curve regions and have been installed on the ceiling to transfer the cassette of LCD glass along the closed-loop and open-loop tracks. In this study, the OHS system was implemented by a proposed linear motor to solve encoder installation and the system cost problems of the long distance transfer system. In addition, we utilized a new algorithm of the position detection and a new control algorithm for driving linear motor. The newly developed control algorithm was demonstrated from both a computer simulation and an experimentation, indicating that the highly reliable and speedy transfer system can enhance the LCD panel productivity of commercial OHS system.