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A highly sensitive, non-contact torque sensor was developed using amorphous magnetic alloy. A thin strip of amorphous magnetic alloy was bonded onto the surface of the shaft, formed into a chevron shape, then the torque applied to the shaft was detected from the difference in the inductance of the detection coil wound around the strip. A highly sensitive torque sensor having outstanding linearity could be made by selecting a magnetic working point and stress working point to apply to the amorphous magnetic alloy and by optimum arrangement of the heat treatment and bonding processes. Temperature characteristics, twist resistivity, and noise resistivity were also evaluated to prove performance in practical use.