A displacement measurement system of heterodyne grating interferometer, comprises a reading head, a measurement grating and an electronic signal processing component. Laser light emitted from the laser tube is collimated, passes through the first polarization spectroscope, and then emits two light beams with a vertical polarization direction and a vertical propagation direction; the two light beams pass through two acousto-optic modulators and respectively generate two first-order diffraction light beams with different frequencies, which are later divided into reference light and measurement light; two parallel reference light beams form a beat frequency electric signal with positive and negative first-order diffraction measurement light respectively after passing through a measurement signal photo-electric conversion unit; the beat frequency signals are transmitted to the electronic signal processing component for signal processing, thus the output of linear displacement in two directions is realized.