Fast Steering Mirrors (FSM) play an important role in diverse optical applications for beam stabilization, image sharpening or dynamic beam steering. These applications require the FSM to have a precise response across a large frequency range, thus the need of a dynamic controller. But the controller is ultimately limited, among other factors, by the performance of the sensor: its ability to measure accurately the required physical value and with a sufficient bandwidth. The compact, dynamic and precise embedded Eddy Current Sensors (ECS) developed by Cedrat Technologies, combined with a model-based controller allow a two and a half times improvement on the bandwidth compared to current sensing technology, while being more precise overall.