A clearance measurement system is provided. The clearance measurement system includes a reference geometry disposed on a first object having an otherwise continuous surface geometry and a sensor disposed on a second object, wherein the sensor is configured to generate a first signal representative of a first sensed parameter from the first object and a second signal representative of a second sensed parameter from the reference geometry. The clearance measurement system also includes a processing unit configured to process the first and second signals to estimate a clearance between the first and second objects based upon a measurement difference between the first and second sensed parameters.