Traditional EGR measurement systems using delta pressure over a fixed orifice such as a DPFE sensor (Delta Pressure Feedback for EGR), have limitations in the ability to measure EGR accurately. Also, the pressure drop that results from the orifice may not be acceptable in some applications. To measure the EGR accurately and without any pressure loss, a new measurement system was developed that uses an oxygen sensor in the intake air.In this paper, the technology of using an oxygen sensor to measure the EGR concentration is discussed. The paper details the EGR measurement principle with an oxygen sensor and the associated mathematical relations of translating the oxygen measurement to EGR measurement. Factors affecting the EGR measurement such as the air/fuel ratio of the EGR, intake air pressure, and diffusion effects of the EGR constituents are discussed in detail. Compensation mechanisms are explained and associated results shown. A methodology to compensate for the part to part variability of the oxygen sensor is also discussed. Dyno and vehicle testing results with the compensations applied are shown and discussed.