A continuously variable displacement mechanism, which is composed of a hydraulic control valve with mechanical-positional feedback to camshaft, was designed for changing the displacement of traditional camshaft connecting-rod low speed high torque (LSHT) hydraulic motor continuously. The new type of continuously variable displacement mechanism is simple and easy to be made. The structure and principle of a continuously variable displacement mechanism was introduced. The mathematic model of the continuously variable displacement mechanism was set up and its static and dynamic characteristics were analyzed with the help of computer simulation. It can be seen that the cam ring on camshaft of the traditional LSHT hydraulic motor can stop at any position between minimum and maximum eccentricity, according to an input fluid pressure signal. And it can also stay anywhere stably through self-adjusting. Besides, it can work stabilized when load impact or oil leakage exists.