In most multi-stage forging processes, the die spotting process or alignment of punch and die depends on the manual operation. It results a very tedious and inefficient procedure, thus the proper measurement system is needed to improve productivity and accuracy. This paper proposes a measurement system for alignment of die and punch which has a cylindrical holder, and describes the system concepts using 3 eddy-current displacement transducers and precise measurement jig. In order to apply this measurement system to real situations, the measuring procedures and system calibration method, etc. are proposed. Finally, the accuracy and productivity of this measurement system are investigated in this paper.