An encoder signal processing circuit is connected to encoder heads outputting an encoder signal in accordance with a relative displacement with respect to a corresponding scale in such a way that signals can be transmitted to and received from the encoder heads, and processes encoder signals from the encoder heads. The circuit includes a processing unit and a processing decision unit. The processing unit generates displacement information from the encoder signal. The processing decision unit decides at least one of content of processing for the encoder heads and content of processing on encoder signals read from the encoder heads after starting to read an encoder signal from one of the encoder heads.