We present an integrated sensor based on a grating interferometer (GI) for in-plane displacement measurement in microregions of large engineering structures. The system concept and design, based on a monolithic version of Czarnek's GI, is discussed in detail. The technology chain of the GI measurement head (MH), including the master fabrication and further replication by means of hot embossing, is described. The numerical analyses of the MH by means of geometric ray tracing and scalar wave propagation are provided. They allow us to determine geometrical tolerance values as well as refractive index homogeneity and nonflatness of MH working surfaces, which provide proper beam guiding. Finally the demonstrative measurement performed with a model of the sensor is presented.