It is presented in this paper a novel micromachined electrostatically suspended gyroscope (MESG) based on micro electro mechanical systems(MEMS) technology.In order to realize the five degree of freedom(5 DOF) levitation control of MESG,the position detection scheme is carried out.Firstly,the micro displacement detection theory is presented;the micro displacement detection method based on frequency multiplex and switched demodulation technique is proposed.The position detection system consisting of the multi frequency generator,front amplifier and lock in amplifier is designed based on the direct digital synthesizer(DDS) technology.The specifications of the displacement detection circuit can satisfy the 5 DOF control demand of MESG.