The aim of this study is to develop an Intelligent McKibben actuator with an integrated soft displacement sensor inside, so that displacement of this actuator can be controlled without having any extra devices attached. In addition, the high compliance which is a positive feature of the McKibben actuator is still conserved. This paper consists of four main parts. First of all, different types of soft displacement sensors made out of rubber were composed, and tested for their functional characteristics. Secondly, the Intelligent McKibben actuator was developed with the soft displacement sensor incorporated within. Then, experiments of the position servo control with a single Intelligent McKibben actuator were carried out. At last a robot arm mechanism was designed with two Intelligent McKibben actuators, and those experimental results showed a great potential for its future applications.