A motorized high speed spindle has very complicated dynamics consisting of non-stationary and speed-related thermal characteristics. Many studies have reported different designs to control or monitor thermal spindle growth with limited results, whereas the application of High Speed Machining (HSM) demands "zero tolerance" no matter the range of speed or material to be machined. This study will outline a direct displacement monitoring system that is capable of accurately monitoring and compensating for thermal growth associated with motorized high speed spindles. This system of monitoring and compensating is a considerable improvement compared to many take inaccurate readings through a traditional thermo coupler. The direct displacement measuring system, optimizing a high speed synchronous feedback system will meet the tolerance and performance expected in HSM applications. Based on the introduction of Foucault Current, a design for an accurate thermal growth is outlined.