This paper proposes the design of a linear magnetic position sensor (LMPS) to detect the mover position of the permanent magnet linear synchronous machines (PMLSMs). The working principle of the LMPS is based on the well-known Hall-Effect. The Hall-Effect-based design of LMPS is considered because it provides a low cost and relatively harsh environment susceptible alternative for the position detection for long track PMLSM system. The initial design was performed using 3D-finite element analysis and genetic algorithm-based deterministic optimization. Based on the initial model, four LMPS were manufactured and tested under the output constraint of peak flux density > 0.1T and total harmonic distortion < 3%. From the test results, it is concluded that the manufactured LMPS suffered significant deviation in output compared to the simulation model. These anomalies arise because of the manufacturing tolerances. To further improve the design and manufacturing process of the LMPS considering the effect of tolerance, a reliability-based robust design optimization (RBRDO) of the LMPS is proposed. The results of RBRDO confirms its usefulness for the design process of the LMPS in terms of undesired design non-compliance cost and great robustness without sacrificing the accuracy of the output signal.