In order to further expand the scope of applications of the time grating displacement sensor, a novel angle measuring system in view of a two-phase driving type time grating displacement sensor was proposed based on the traditional field type time grating displacement sensor. Position signals from grating sensor with low resolution, low-cost and time signals based on the direct digital frequency synthesizer technique were used to form one novel time traveling wave in the angle measuring system. Under the support of traditional technology from the traditional time grating displacement sensor, the time traveling wave was used to construct a new type angle measuring system. The error model of the angle measuring system was studied and the results showed that the main errors are made up of non-orthogonal grating signals, non-equal amplitude of grating signals and residual DC level. The experimental results showed that the measuring errors of time grating displacement sensor are reduced effectively, and the measuring accuracy of the angle measuring system is improved greatly and the measuring accuracy reaches ±3.2″ through the error model.