To assist in the fast alignment of tiny components, Prodrive Technologies has developed a type of camera system called the Component Alignment Sensor (CAS) that is used on a pick-and-place machine. The system uses an optical target as the reference during its assembly and final testing steps. Two main components of the target are a glass reticle and a stainless steel carrier that are bonded together. These two components need to be precisely aligned w.r.t. each other. Till now, the alignment between the reticle and carrier has been performed manually by relative movement between them created by hand. However, this method has some limitations, including, but not limited to, an increase in the alignment time and sensitivity to external jerks or disturbances. Accordingly, the thesis objective is to create a (detailed) design of an alignment mechanism to perform the 3-DOF in-plane alignment in µm and sub-mrad level. The research starts with the formulation of design requirements, followed by concept design, evaluation and selection, and finally a detailed design of the mechanism. A flexure-based alignment mechanism was proposed and designed that uses fine screws for actuation. Various design principles were applied to construct a stiff and compact mechanism that uses a limited number of adjustment steps for the alignment. The process was supported by calculations and analyses that contributed to decision making. Besides, the assembly and alignment procedures of the alignment mechanism were described. The thesis is concluded with a plan to verify if the matured design meets the set requirements.