An Acoustic Vector Sensor (AVS) is a device used to detect acoustic signals by converting mechanical energy of an incident wave to a detectable electrical energy using the acoustic particle principle from the literature.Its design is based on two parallel piezoelectric beams attached to a mechanical sensing tip using a rotary joint component. The sensor uses piezoelectric elements to convert mechanical strain into sensible electrical signal. Design of the sensor is modular, that is individual modules could be easily maintained, tested and calibrated. All parts of the sensor has been fabricated by mechanical micro-machining and precisely assembled using representative tests on individual pieces and dynamic simulations in the assembled sensor system. Complete design, analysis and vibrational testing of an acoustical sensor was performed.Results of this project can be used to build a sensor for a manufacturing system. The developed sensor is proven to have a very good SNR ratio at wide range of frequencies. It can be used to detect vibration and accurate displacement measurement system if packaged as a smart sensor in manufacturing systems.