A coupling and control assembly including a non-contact, linear inductive position sensor is provided. The assembly includes a coupling housing and a stator structure disposed within the coupling housing and including a stator housing. A translator structure is coupled to a coupling member of the assembly to rotate therewith about a rotational axis. The sensor is mounted on one of the housings. The translator structure includes a coupler element made of an electrically conductive material. The sensor is configured to create a magnetic field to induce eddy currents in the electrically conductive material. Movement of the coupler element changes a magnetic field caused by the eddy currents. The sensor provides a position feedback signal for vehicle transmission control. The signal is correlated with the linear position of the translator structure along the rotational axis.