The construction of Fabry-Perot interferometer is very simple and it has been already utilized in different measurement systems. The result of displacement measurement is obviously influenced by the tilt angles of measurement mirror, if a Fabry-Perot interferometer is utilized for displacement measurement. Hence, the measuring range of current systems is rather small (less than 1 mm). The goal of this investigation is to develop a Fabry-Perot interferometer for large travelling range (till 60 mm) by aid of compensation of tilt angles with an angular sensor, piezo translators, control mechanism and self-designed software. To verify the measuring characteristic of the self-developed Fabry-Perot interferometer, some comparison measurements have been performed. A commercial laser interferometer serves as reference standard and the differences between Fabry-Perot interferometer and the commercial Laser interferometer are measured. Through experimental tests, the differences are less than 0.3 m in the full measurement range. The results show that the Fabry-Perot interferometer can meet the measuring requirement with high accuracy of sub-micrometer order and large measurement range.