This SBIR Phase I project will develop a MEMS gyroscope that uses an ultra high resolution sensing technique for measuring proof mass motion. The goal is to demonstrate the feasibility of this concept by understanding the optical, mechanical, and electrical performance characteristics that result from using micro interferometric sensing in a MEMS gyroscope. Specific objectives of the Phase I effort are to (1) develop a system level model that captures the behaviors of interest and enables design decisions (2) demonstrate sufficient optical performance for high resolution sensing in a prototype scale package and (3) show that this sensing technique improves device stability by enabling a design with a large separation between the sense resonance frequency and drive resonance frequency. This large separation in frequencies results in a device with much greater stability and better performance over temperature enabling the use of this technology in metric tracking hardware and tactical navigation applications. The TRL at the beginning of the contract is between zero and one. At the end of the contract the TRL will be 3.