Continuous monitoring of knee motion can provide deep insights into patients' rehabilitation status after knee injury and help to better identify their individual therapeutic needs. Potentiometers have been identified as one possible sensor type for continuous monitoring of knee motion. However, to verify their use in monitoring real-life environments, further research is needed. We aimed to validate a potentiometer-embedded knee brace to measure sagittal knee kinematics during various daily activities, as well as to assess its potential to continuously monitor knee motion. To this end, the sagittal knee motion of 32 healthy subjects was recorded simultaneously by an instrumented knee brace and an optoelectronic reference system during activities of daily living to assess the agreement between these two measurement systems. To evaluate the potentiometer's behavior during continuous monitoring, knee motion was continuously recorded in a subgroup (n = 9) who wore the knee brace over the course of a day. Our results show a strong agreement between the instrumented knee brace and reference system across all investigated activities as well as stable sensor behavior during continuous tracking. The presented potentiometer-based sensor system demonstrates strong potential as a device for measuring sagittal knee motion during daily activities as well as for continuous knee motion monitoring.