Abstract: An inductive proximity sensor and related method for sensing a presence/position of a target, with mounting effect compensation, are disclosed. In at least one embodiment, the method includes providing a proximity sensor having first and second coils that are both at least indirectly in communication with control circuitry. The method also includes receiving respective first and second signals at least indirectly indicative of respective first and second electromagnetic field components respectively experienced by the first coil as influenced both by a target and a structure supporting the sensor and the second coil as influenced by the supporting structure. The method further includes determining by way of the circuitry a third signal based at least in part upon the first signal, as modified based at least in part upon the second signal, whereby the third signal is indicative of the presence or position of the target relative to the sensor.