Abstract: A system and method for measuring torque transmitted in a rotating shaft using two target devices located at separate locations on the shaft is disclosed. Each target device includes one or more reference edges, with two sensors each disposed adjacent to corresponding target device. A processor calculates, with reference to a counter, the difference between the clock times of successive reference edges to produce an actual time elapsed between the passages of the referenced edges by their respective sensors. The processor converts the change in time difference into a value that represents a change in the angular orientation of the two target devices with respect to their angular orientation at zero torque, which is substantially equivalent to an angle of twist in the rotating shaft between the target devices, and the processor calculates the torque transmitted in the rotating shaft based on the change in angle of twist.