This thesis describes the design and verification of a scanning, optical, displacement measurement instrument, which utilizes digital image correlation (DIC) to measure displacement. This system is intended to provide proof of concept for a technique to be incorportated into a optical creep measurement instrument. This system captures magnified images of a wire sample, and compares these images against a set of target images using normalized cross-correlation in order to locate a unique set of features on a wire sample. A linear encoder measures the displacement of the wire as it is translated axially in relation to the imaging system. The total distance between two points on the wire is computed by summing the global coordinate measurement from the linear encoder and the local coordinate scale measurement using image correlation. Thecomponentswhichweredesignedforthissysteminclude, aco-axially illuminated imaging system, flexure based mounting system which allows for high precision component alignment, and a high accuracy linear positioning system. The goal for this system is the capability of resolving the position of specific features on a wire, to 10nm without the need for special preparation of the samples. The proof of concept prototype, performed a series of 40 DIC based position measurements, at a rate of one measurement per second, resulting in a repeatability uncertainty of 4.58nm. This level of performance demonstrates the viability of this method of displacement measurement, for implementation into a complete creep measurement instrument. The primary sources of measurement uncertainty are thermal in nature and could be reduced with tighter environmental temperature control and further design for thermal stability.