The paper presents a prototype of a new displacement measuring system based on an optical interferometer using a polarization-maintaining optical fiber. The proposed configuration makes it possible to separate the laser head and the detectors from the actual interferometer (i.e., the measuring head). In this way, the interferometric head can be miniaturized and used to gauge targets which are difficult to access. The resolution provided by the electronic fringe counter is equal to lambda/8 (approximately 80 nm), and the overall accuracy is 1 mum over a measuring range of 20 mm.