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Big daddy resolved it 
You have to sacrifice resetting the phone using the Sony PC software 1st. Avoid data backup from old accounts.
Then, after the reboot is done and Android is reinstalled with update x.x.x.534 goto the dialer & type *#*#7378423#*#* then press dial
In the menu that will come go to calibration and then choose proximity sensor. (If you run the test it might give error = -1) Then, set settings to default and it may ask to reboot the device.
After reboot type *#*#7378423#*#* then press dial. In the menu that will come go to calibration and then choose proximity sensor do the test and it will show success. VIOLAAAaaaa!!!!
Check the phone...it works 
Have tested this and the issue is resolved on my phone finally ....yippieeeeeee!!!
does this trick works on Z3 ?!
Note : Proximity sensor not working
I have just fitted a tempered glass screen protector. I now have this issue with my proximity sensor.
I cannot find where to download the old operating software from (x.x.x.534) to calibrate the sensor with. My software does not have a calibrate facility just a test.
Can anyone suggest where the download is available from please?
Also if I calibrate it to work with my screen cover then download up to date operating software will the phone then revert back to not working using the new software or will the sensor be calibrated and stay as it is?
There will be no point in all the effort if on the next software upgrade it reverts back to not working!
Well apparently several things including third party apps or screen cover could cause this issue of ‘having the proximity switch constantly ON’. However in my case (I have Xperia Z Ultra with Lollipop) the issue is hardware related. As many already suggested here, the proximity switch’s chip is located somewhere close to the proximity sensor inside the phone. If you happen to put enough pressure on that area then your proximity switch becomes off and it works fine afterward while you are still applying that pressure. Apparently those who are lucky, by keep having that pressure for few secs the switch’s chip slips back into its position and the problem would be resolved. However for me, unfortunately, as soon as I remove the pressure the switch turns back on! You can check that by dialing *#*#7378423#*#* and then in the Service Menu go to the ‘Service Test’ and hit the ‘Proximity Switch’. If you have the same problem your proximity switch should appear as ‘ON’ there. When you apply that pressure somewhere around the sensor ( mine is on the back close to the NFC logo) you would see on screen that proximity switch is going OFF. Hopefully after you remove the pressure it stays off and you would solve the problem this way, but if you are not lucky like me then you could either do the hardware troubleshooting by literally having access to the proximity chip or try the dummy thing that I do (but works every time) , which is pressing that same area on the back of my phone when I want to hang-up and then bring the phone down from my ear and disconnect the call or have access to screen while I am still on the line!
i m trying the same no. which u have been wrriten..n its also opening the service menu but there is no option for the calibration
Hi @Dwiyacita
You can check this link for more information: http://forum.xda-developers.com/showthread.php?t=2458660
I hope can be useful.
I'm at disposal for any question.
Best Regards,
Hi @bilalraju
I suggest boot the device in safe mode an check what happens:
http://talk.sonymobile.com/t5/FAQ/How-to-boot-your-phone-into-safe-mode/m-p/348008#U348008
If my answer was helpful for you, please thank me with Kudos.
I'm at disposal for any question.
Best Regards,