This paper proposes a method for both the out-of-plane and in-plane displacement sensitivity calibration of an acoustic emission (AE) sensor. In the method, a laser homodyne interferometer is used to measure the out-of-plane and in-plane displacement of the surface of a large test block excited by a repeatable source transducer. The out-of-plane displacement is measured by aligning the laser beam perpendicular to the surface with time gating of the receive waveform used to isolate only the direct arrival of the longitudinal wave produced by the piston source transducer. For the in-plane displacement measurement, the laser beam is aligned parallel to the surface to intersect a small optically reflective step with the time waveform being gated to measure only the direct shear arrival produced using a normal incidence shear wave source transducer. In each case, the interferometer measurement is followed by coupling the sensor under test to the measurement surface, which is then exposed to the same acoustic field and the sensor output signal measured. This substitution method allows the sensor sensitivity to be obtained in terms of volts per unit displacement for both the out-of-plane and in-plane surface displacement. The method allows a comprehensive description of an AE sensor response to different planes of displacement and offers the potential for a traceable sensor calibration to units of length.