The advent of tip-timing systems makes it possible to assess turbomachinery blade vibration using non-contact systems. The most widely used systems in industry are optical. However, these systems are still only used on developmental gas turbine engines, largely because of contamination problems from dust, dirt, oil, water etc. Further development of these systems for in-service use is problematic because of the difficulty of eliminating contamination of the optics. Eddy current sensors are found to be a good alternative and are already being used for gas turbine health monitoring in power plants. Experimental measurements have been carried out on three different rotors using an eddy current sensor developed in a series of laboratory and engine tests in-house to measure rotor blade arrival times. A new tip-timing algorithm for eddy current sensors based on integration has been developed and is compared with two existing tip-timing algorithms: peak-to-peak and peak-and-trough. Among the three, the integration method provided the most promising results in the presence of electrical noise interference. The main aim of this work is to develop an algorithm that can be used to build a simple, robust, real-time and low cost analogue electronic circuit for use in-service health monitoring of engines.