A counterbalanced reed pendulum apparatus, using a noncontacting optical transducer, is described. It is particularly suited to the study of strain amplitude dependent internal friction of single crystals of ceramics in the temperature range ambient to 800 degrees C, and at frequencies in the range 1-30 Hz. The apparatus can also be used for the study of sheet metal or foil specimens. The importance of using a counterbalanced system when studying amplitude dependent dislocation phenomena is discussed. Logarithmic decrement values in the range 5*10^-5 to 8*10^-2 have been observed with the apparatus.