The heterodyne laser interferometer has gained popularity in applications a
s an encoder system in ultra-precision machines. it can provide ultra high
resolution, which satisfies the requirements of ultra-precision machines. T
he difficulty of using a laser interferometer is the elimination of the eff
ects of change of the refractive index of air whether by variation in envir
onmental conditions or by external effects like air movement, air vibration
and mechanical vibration. This paper presents a new technique for the elim
ination of the effect of refractive index when using a heterodyne laser int
erferometer. The preliminary results showed that this set-up has a better s
tatic error when compared to an industrial laser system.