While Photonic Doppler Velocimetry (PDV) has become a common diagnostic tool for the measurement of normal component of particle motion in shock wave experiments, this technique has not yet been modified for the measurement of combined normal and transverse motion, as needed in oblique plate impact experiments. In this paper, we discuss the design and implementation of a compact fiber-optics-based heterodyne combined normal and transverse displacement interferometer. Like the standard PDV, this diagnostic tool is assembled using commercially available telecommunications hardware and uses a 1550 nm wavelength 2 W fiber-coupled laser, an optical focuser, and single mode fibers to transport light to and from the target. Two additional optical probes capture first-order beams diffracted from a reflective grating at the target free-surface and deliver the beams past circulators and a coupler where the signal is combined to form a beat frequency. The combined signal is then digitized and analyzed to determine the transverse component of the particle motion. The maximum normal velocity that can be measured by this system is limited by the equivalent transmission bandwidth (3.795 GHz) of the combined detector, amplifier, and digitizer and is estimated to be ∼2.9 km/s. Sample symmetric oblique plate-impact experiments are performed to demonstrate the capability of this diagnostic tool in the measurement of the combined normal and transverse displacement particle motion.