Main purpose of the paper is to present high-response hydraulic linear drive, which is controlled with new digital piezo valve and where the new position transducer is integrated as a part of hydraulic cylinder. The new linear drive has great potential for the use in modern adaptive position control systems integrated into the smart machines. Hydraulic digital piezo valve with main static and dynamic characteristics as well as its functionality is presented in detail. The main static and dynamic characteristics of digital piezo valve which influence directly on the linear drive performance are high resolution of the volume flow rate and high response of the valve. Beside valve characteristics the new integrated position transducer, the digital controller and control method, presented in the paper, have major impact on linear drive performance. At the end of the paper the step response and position resolution of the hydraulic linear drive controlled with the new digital valve is shown and compared with the results of reference hydraulic drive controlled with high response proportional valve.