In this paper, we present the development of a data glove system using magnetic induction coils as finger movement sensors. This data glove has the capability of measuring ten degrees of freedom of a hand with only five sensors that are arranged properly on the palmar surface instead of the dorsal surface. Because these sensors are installed on the finger phalange positions, there is no contact point between the sensors and the finger joints. Hence, the shape of the sensors does not change as the fingers are bending, and the quality of measurement and the lifetime of the sensors will not decrease with time. Additionally, the motion constraints of the finger joints are investigated to simplify the development of the data glove. For the convenience of using this glove, a simple and efficient calibration process consisting of two steps is also provided, so that all required parameters can be determined automatically. The theoretical formulation of the bending angles of proximal interphalangeal, metacarpophalangeal, and thumb interphalangeal joints as well as the calibration equations are derived directly from the positions and orientations of the generator and sensor coils on the data glove. Also described and realized are the circuit block diagram and the construction of the data glove system. To prevent the interference among the generator coils, we adopt the time division method to scan the generator and sensor coils. So far, the experimental results of the sensors performing linear movement and bending angle measurements directly using an oscilloscope in less noisy environments are very satisfactory. It reveals that our data glove is available for a man-machine interface.