We construct a metamaterial–insulator–metamaterial structure and study the enhancement of lateral shift or possible applications. Stationary-phase method for waveguides with indefinite metamaterial is derived and simulation results are given to discuss the properties about the proposed structure. Simulation results show that the parallel component of relative permittivity of metamaterial has much larger influence on the lateral shift than the vertical component, and the detection of lateral shift is a much more sensitive method than that of reflectivity to measure parameter changes of metamaterial.