Volume hologram wildly used in optical data storage, fiber optics communication, and 3D imaging. There are many advantages of volume hologram such as high diffraction efficiency, low manufacture cost, easy designing of diffraction pattern, and easy reproduced. Hence, we propose a novel method for displacement measurement which combined with heterodyne interferometry and reflection type volume holographic grating. In this paper, we demonstrate one dimension displacement measurement result and compare with two commercialized method. Based on the measured results, there are no significant differences between them. And the smallest displacement variation can be observed is about 14 pm.