A simple synthetic-wavelength self-mixing interferometer is proposed for precision displacement measurement. Choosing the frequency difference of the orthogonally polarized dual frequency He–Ne laser appropriately, we introduce synthetic wavelength theory into self-mixing interference principle and demonstrate a feasible optical configuration by simply adjusting the optical design of self-mixing interferometer. The phase difference between the two orthogonally polarized feedback fringes is observed, and the tiny displacement of the object can be measured through the phase change of the synthetic signal. Since the virtual synthetic wavelength is 106 times larger than the operating wavelength, sub-nanometer displacement of the object can be obtained in millimeter criterion measurement without modulation, demodulation and complicated electrical circuits. Experimental results verifies the synthetic wavelength self-mixing interferometer's ability of measuring nanoscale displacement, which provides a potential approach for contactless precision displacement measurement in a number of scientific and industrial applications.