In the realm of industrial automation and precision measurement, domestic high-precision laser displacement sensors have emerged as critical components, driving advancements in manufacturing, quality control, and research. These sensors utilize laser triangulation or time-of-flight principles to measure distances with micron-level accuracy, offering non-contact solutions that minimize wear and ensure reliability in demanding environments. Unlike traditional mechanical probes, they excel in applications involving fragile, hot, or fast-moving surfaces, such as semiconductor wafer inspection, automotive assembly line monitoring, and aerospace component profiling. The core technology relies on emitting a focused laser beam onto a target; the reflected light is captured by a CMOS or CCD detector, and displacement is calculated through geometric algorithms. Recent innovations in domestic production have enhanced signal processing, noise reduction, and thermal stability, enabling sensors to maintain precision even under vibrations or temperature fluctuations. For instance, adaptive filtering algorithms can compensate for surface reflectivity variations, while integrated cooling systems prevent overheating during continuous operation. In practice, these sensors are deployed for thickness gauging in steel mills, real-time alignment in robotics, and 3D scanning for reverse engineering. A case study from an electronics manufacturer shows how implementing domestic laser sensors reduced measurement errors by 30% in PCB solder paste inspection, boosting yield rates. Challenges persist, such as handling transparent or highly reflective materials, but ongoing R&D focuses on multi-wavelength lasers and AI-based calibration to overcome these limits. As Industry 4.0 accelerates, the integration of these sensors with IoT platforms allows for predictive maintenance and data analytics, optimizing production efficiency. Domestically produced models often offer cost advantages and tailored support, making them viable alternatives to imported counterparts. Future trends include miniaturization for portable devices and enhanced connectivity for smart factory ecosystems. By leveraging domestic high-precision laser displacement sensors, industries can achieve higher accuracy, reduce downtime, and foster innovation in precision-driven sectors.