Measuring displacements in model tests typically involves contact-based sensors such as linear potentiometers, where contact between two moving parts occurs at the sensing point. The sensor’s finite mass, the limited stiffness of the beams and the clamping mechanism, and the slippage and hinging of the sensor body could affect the object’s response and lead to measurement errors. Also, the physical mounting rack required to hold these sensors often obstructs the view and makes significant areas unavailable for conducting some other essential investigations. The advancement in high-speed, high-resolution and reasonably priced rugged cameras makes it feasible to obtain better displacement measurements by image analysis. This paper introduces a non-contact method that works by video recording the projection of laser lines on a test object to measure static and dynamic vertical displacements. The technique produces a continuous settlement distribution along the laser line passing through multiple objects of interest. This paper presents the theory for converting laser line images to displacements. The new method’s validity is demonstrated by comparing the results from other measurement techniques: hand measurements, linear potentiometers and three-dimensional stereophotogrammetry.