An exposure apparatus having an illumination optical system for illuminating a mask with illumination light and a projection optical system for projecting a pattern image of the illuminated mask on a substrate, the apparatus comprising: a frame member arranged to support the projection optical system; a mark detection system for detecting a mark of the substrate, the mark detection system being arranged away from the projection optical system; a mask stage system having a first movable body for holding the mask and a first drive system for driving the first movable body, the first movable body being arranged above the projection optical system; a first encoder system having a plurality of first heads (26A 1-3, 26B 1-3, 26C 1-3) each being arranged to irradiate a first measurement beam on a first grating section(24A, 24B, 28) having a reflective grating, the first encoder system being arranged to measure positional information of the first movable body, the first grating section being provided to one of the frame member and the first movable body and the plurality of first heads being provided to the other of the frame member and the first movable body; a substrate stage system having a second movable body for holding the substrate and a second drive system for driving the second movable body, the second movable body being placed below the projection optical system; a second encoder system having a plurality of second heads (48a-k) each being arranged to irradiate a second measurement beam on a second grating section (44A-D) having a reflective grating, the second grating section being placed substantially parallel to a predetermined plane orthogonal to an optical axis of the projection optical system, the second encoder system being arranged to measure positional information of the second movable body; and a control system for controlling driving of the first movable body by the first drive system and driving of the second movable body by the second drive system based on measurement information of the first encoder system and measurement information of the second encoder system, respectively, the apparatus being configured such that in each of an exposure operation of the substrate and a detection operation of the mark of the substrate, the positional information of the second movable body is measured by the second encoder system. a frame member arranged to support the projection optical system; a mark detection system for detecting a mark of the substrate, the mark detection system being arranged away from the projection optical system; a mask stage system having a first movable body for holding the mask and a first drive system for driving the first movable body, the first movable body being arranged above the projection optical system; a first encoder system having a plurality of first heads (26A 1-3, 26B 1-3, 26C 1-3) each being arranged to irradiate a first measurement beam on a first grating section(24A, 24B, 28) having a reflective grating, the first encoder system being arranged to measure positional information of the first movable body, the first grating section being provided to one of the frame member and the first movable body and the plurality of first heads being provided to the other of the frame member and the first movable body; a substrate stage system having a second movable body for holding the substrate and a second drive system for driving the second movable body, the second movable body being placed below the projection optical system; a second encoder system having a plurality of second heads (48a-k) each being arranged to irradiate a second measurement beam on a second grating section (44A-D) having a reflective grating, the second grating section being placed substantially parallel to a predetermined plane orthogonal to an optical axis of the projection optical system, the second encoder system being arranged to measure positional information of the second movable body; and a control system for controlling driving of the first movable body by the first drive system and driving of the second movable body by the second drive system based on measurement information of the first encoder system and measurement information of the second encoder system, respectively, the apparatus being configured such that in each of an exposure operation of the substrate and a detection operation of the mark of the substrate, the positional information of the second movable body is measured by the second encoder system.