A power transmission device with a clutch plate wear sensor system includes a power transmission shaft configured to transmit torque and a clutch configured to selectively deliver power into or out of the power transmission shaft. The clutch includes a clutch stack and clutch piston that moves to selectively actuate the clutch stack between an engaged state to deliver power through the clutch and a disengaged state to not deliver power through the clutch. The clutch stack wear sensor system includes at least one detectable element arranged for movement in unison with the clutch piston and a sensor arranged to detect the detectable element and provide a signal indicative of a wear characteristic of the clutch stack.