This study first summarized a piezoelectric excitation source arrangement guideline for sandwich annular traveling wave transducers, which can excite ideal traveling waves for driving while ensuring consistent circumferential stiffness of the annular transducer. Consequently, a general structural design method was proposed for annular sandwich traveling wave piezoelectric transducers operating with out-of-plane traveling waves based on the above-mentioned arrangement guideline. Moreover, to study the vibration characteristics of the designed transducer based on the proposed method, an electromechanical coupled dynamics model was developed using the dynamic substructure method combined with the Lagrange equation. This model is universal and has guiding significance for the design and optimization of the same type of annular traveling wave piezoelectric transducers. Thereafter, the feasibility of the transducer structure design method and the correctness of the developed dynamics model were verified through appropriate vibration measurement experiments on the transducer prototype. The measured ideal mode shape and regular elliptical motion verified the feasibility of the transducer design method, and the comparison between the vibration measurement and theoretical model calculation results confirmed the correctness of the developed dynamic model. Finally, an application study of the proposed built-in sandwich traveling wave transducer was conducted to investigate its driving characteristics. The proposed transducer was used to drive a rotor to build a traveling wave piezoelectric motor. In addition, output performance experiments of the motor prototype were conducted. The experimental results indicated that under the driving conditions of 300 N pre-pressure, 500 Vpp voltage, and 19 kHz exciting frequency, the no-load speed of the motor was 19.04 RPM, its stall torque was 1.2 N·m, the maximum output power of the entire machine reached 0.6453 W, and its maximum output efficiency was 15.87%. Moreover, the normal operation of the rotating motor further verified the feasibility of the transducer structure design approach and the reliability of the drive application. The structural design method and the corresponding dynamic model proposed in this study are expected to have important guiding significance for the design and optimization of sandwich-type annular traveling wave transducers. Furthermore, the application investigation in this study provides a typical example for the traveling wave transducer.