An optical encoder including a graduation plate inscribed with a graduation line along a predetermined direction and an optical reader for optically reading the graduation line on the graduation plate in which a corresponding electric signal is outputted from the optical reader in accordance with movement of the graduation plate and the optical reader relative to each other, the optical reader includes a light projecting optical system for irradiating light from a light projecting source to the graduation plate and a light receiving optical system for focusing light from the graduation plate to a light receiving portion and the light receiving optical system is constituted by a telecentric optical system to thereby enable to be fabricated at low cost by dispensing with high integrating accuracy.