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In this paper, the authors present a breakthrough extension of the stencil lithography tool and method. In the standard stencil lithography static mode, material is deposited through apertures in a membrane (stencil) on a substrate which is clamped to the stencil. In the novel dynamic mode, the stencil is repositioned with respect to the substrate inside the vacuum chamber and its motion is synchronized with the material deposition. This can be done either in a step-and-repeat or in a continuous mode. The authors present the first results proving the accurate x-y-z in situ positioning and movement of our stages during and in between patterning.