Abstract: Faults, dimensions and other characteristics of a material or structure are sensed by a coherent beam's reflection from the material during ultrasonic or very fast vibration. The reflected beam acquires a phase substantially different from its original phase and from the phase of a reference beam split from the common source beam. The reflected beam and the reference beam are superimposed by diffraction in a photorefractive polymer composite adaptive holographic beamsplitter, and the superimposed beams are detected by a photodetector capable of detecting small interference changes from ultrasonic surface displacements or perturbations. An apparatus and method defining an improved homodyne interferometer for performing the method is described.