A variable displacement axial piston machine. The variable displacement axial piston machine includes a cylinder block with at least one main cylinder and main piston, a swash plate, a plunger arrangement with a plunger and auxiliary cylinder, and a sensor. The swash plate is arranged to effect movement of the main piston in the main cylinder upon rotation of the swash plate relative to the cylinder arrangement. The plunger is arranged to tilt the swash plate relative to the cylinder arrangement and to control a stroke of the main cylinder in the main piston. To provide a simple and reliable measurement of displacement of the main piston in the main cylinder, the invention provides a sensor element which is fixed in the auxiliary cylinder and which is adapted to sense movement of the plunger therein.