An optical tilt sensor based on a phase-sensitive diffraction grating with direct intensity-modulated scheme is proposed in this paper. The tilt sensor consists of a coherent light source, an integrated grating, a mechanical sensing part, and an optical signal processing circuit. The mechanical sensing part consists of a bulk proof mass and two cantilevers that can be fabricated with a two-mask process on a silicon-on-insulator substrate. A phase-sensitive diffraction grating, which was formed with the integrated grating and the upper surface of the proof mass, acts as the sensing element for the tilt measurement. Experimental results show this tilt sensor provides the optimal tilt sensitivity of 1.15 V/° and resolution of about 0.0046°, and a measurement range of ±20° in a rotational plane that is perpendicular to the direction of the earth's gravity.