A position measurement system to measure a position of an object relative to a reference, the position measurement system including two interferometers, wherein each interferometer is configured to form a reference beam and a measurement beam from input radiation and to combine the reference beam and the measurement beam to provide output radiation to be delivered to a detector, wherein each interferometer is configured such that the reference beam is formed by reflection of input radiation from a reflective element, and such that the measurement beam is formed by diffraction of input radiation from a grating on the object, and wherein the reference beam and the measurement beam are parallel to each other.