In this paper, a novel optical rotary sensor based on laser self-mixing interferometry is developed for the full-circle rotation measurement. The proposed sensor is convenient to use for it does not need any contact with the target or a cooperative mirror. A prototype is fabricated and tested. The measured results demonstrate a good performance compared with other optical rotary sensors, in terms of the 0.1 μrad resolution, the 2.33×10-4 linearity and 2 μrad stability over one hour. Additionally, the repeatability error is below 14.66 mrad under 9-group full-circle tests, which exhibits the potential to be instrumentalized reliably. Error analysis and limitation discussion have been also carried out. Although the accuracy needs further improvement compared with the best rotary sensor, this method has its unique advantages of high resolution, non-cooperative target sensing and electromagnetic immunity. Hence, the proposed optical rotary sensor provides a promising alternative in precise rotation measurement, tremor tracing and nano-motion monitoring. In this paper, a novel optical rotary sensor based on laser self-mixing interferometry is developed for the full-circle rotation measurement. The proposed sensor is convenient to use for it does not need any contact with the target or a cooperative mirror. A prototype is fabricated and tested. The measured results demonstrate a good performance compared with other optical rotary sensors, in terms of the 0.1 μrad resolution, the 2.33×10-4 linearity and 2 μrad stability over one hour. Additionally, the repeatability error is below 14.66 mrad under 9-group full-circle tests, which exhibits the potential to be instrumentalized reliably. Error analysis and limitation discussion have been also carried out. Although the accuracy needs further improvement compared with the best rotary sensor, this method has its unique advantages of high resolution, non-cooperative target sensing and electromagnetic immunity. Hence, the proposed optical rotary sensor provides a promising alternative in precise rotation measurement, tremor tracing and nano-motion monitoring.