A conveyor system and method of measuring chain wear includes first and second sensing devices positioned at a conveyor line or path and directed toward a conveyor chain that is movable along the conveyor path. The first sensing device senses the presence of a first chain portion of the conveyor chain at a predetermined location as the conveyor chain moves along the conveyor line. The second sensing device senses a second chain portion of the conveyor chain as the conveyor chain moves along the conveyor line. The second sensing device is operable to sense a location of or distance to the second chain portion or may capture an image of the second portion. A controller is operable to determine a degree of wear of a section of chain extending between the first and second chain portions in response to the second sensing device.