This paper reports on the new electric-type torsion meter, designed and developed by Mitsubishi Nagasaki Experimental Tank, for the measurement of the torque of the propeller shaft of the high speed naval craft. The special features of the new torsion meter are as follows. 1) The mechanical parts are designed to be as compact and light as possible, in order to be fitted to the small and high speed propeller shaft. 2) The electronic measurement part consists of the “inductance-variation-type” transducer for the measurement of the relative angular displacement of the two sections of the propeller shaft, and is very stable and convenient for use. 3) The mean value of the fairly steady torque can be measured by zero-method with high accuracy, and continuous recordings for varying torque are also possible. The data for design and construction of our new torsion meter, the method of calibration and our experiences of the measurements, are reported with some examples of ship trials.