Abstract Magnetoencephalography (MEG) is an important functional neuroimaging technique that provides an excellent combination of high spatial and temporal resolution. At present, MEG scanners are handicapped by cost and complexity imposed by cryogenically cooled superconducting sensor technology. In our recently completed Phase II project, we developed new noncryogenic optical sensors that are suitable replacements for superconducting sensors in MEG systems. In this project, using our newly developed sensors, we will build a low cost, room temperature, ‘wearable’ MEG system with resolution exceeding current gold standards. The system developed in this project will be an advanced commercialization ready prototype suitable for neuroscience research applications.