We report on a novel compact interferometery system for measuring parasitic motions of a precision stage. It is a combination of a Michelson interferometer with an auto-collimator, of which full physical dimension is mere 70 mm x 80 mm x 35 mm (WxLxH) including optical components, photo-detectors, and electronic circuits. Since the beams, which measure displacement and angle, can be directed at the same position on the moving mirror, the system is applicable for testing small nano-stages where commercial interferometers are not able to be used. And thus, errors from nano-scale deformation of the moving mirror can be minimized. We find that the residual errors of linear and angular motion measurements are 2.5 nm in peak-to-peak and 0.2 '', respectively. (c) 2007 Optical Society of America.