Abstract: A laser interferometer system based on three design principles, the heterodyne frequency, the avoiding mixing, and the perfect symmetry, is described. These design principles give rise to the interferometer a high stable system with no periodic nonlinearity. This system is capable of providing both displacement and straightness measurements. The arrangement of invention employs a single frequency stabilized input beam from a laser source which is provided to a frequency-shifted means for converting the input beam into a pair of spatial-separated beams having the same optical properties but different optical frequencies. Two identical energy splitters further split the spatial-separated beams into a pair of measurement beams and a pair of reference beams respectively. The measurement beams are incident onto the measurement target and reference target respectively.