A cavity-type beam position monitor (BPM) has been developed for a compact terahertz (THz) free-electron laser (FEL) system and ultra-short pulsed electron Linac system at the Korea Atomic Energy Research Institute (KAERI). Compared with other types of BPMs, the cavity-type BPM has higher sensitivity and faster response time even at low charge levels. When electron beam passes through the cavity-type BPM, it excites the dipole mode of the cavity of which amplitude depends linearly on the beam offset from the center of the cavity. Signals from the BPM were measured as a function of the beam offset by using an oscilloscope. The microtron accelerator for the KAERI THz FEL produces the electron beam with an energy of 6.5 MeV and pulse length of 5 μs with a micropulse of 10-20 ps at the frequency of 2.801 GHz. The macropulse beam current is 40 mA. Because the microtron provides multi-bunch system, output signal would be the superposition of each single bunch. So high output signal can be obtained from superposition of each single bunch. The designed position resolution of the cavity-type BPM in multi-bunch is submicron. Our cavity-type BPM is made of aluminum and vacuum can be maintained by indium sealing without brazing process, resulting in easy modification and cost saving. The resonance frequency of the cavity-type BPM is 2.803 GHz and the cavity-type BPM dimensions are 200 × 220 mm (length × height) with a pipe diameter of 38 mm. The measured position sensitivity was 6.19 (mV/mm)/mA and the measured isolation between the X and Y axis was -39 dB. By measuring the thermal noise of system, position resolution of the cavity-type BPM was estimated to be less than 1 μm. In this article, we present the test results of the S-band cavity-type BPM and prove the feasibility of the beam position measurement with high resolution using this device.