The new IEH3‐4096 series from FAULHABER is the most compact 3‐channel encoder of its class. The new model delivers two square‐wave signals as well as an additional index channel. It offers a higher resolution, an extended operating temperature range and improved speed control, especially in the low speed range. The encoder increases the length of the motor by just 1.4 mm and can be combined with numerous precious‐metal commutated DC‐micromotors of the FAULHABER SR series measuring 15 to 22 mm in diameter. Since they are used in extremely small machines and assemblies, size is a decisive factor.