Due to the periodic nonlinear error, the measurement accuracy of heterodyne laser interferometer is difficult to improve. In this regard, this paper first analyzes the sources of nonlinear errors in heterodyne laser interferometers, including frequency aliasing, polarization aliasing, and ghost ghosting. Second, it discusses nonlinear error compensation and suppression techniques, including interference signal processing, traditional structure improvement, space separation of polarized light, and phase modulation dual-homodyne interference, and then introduces the measurement technology of nonlinear error, including interference signal processing measurement, dual-phase differential detection, and Fabry-Perot interferometer detection. Finally, it summarizes and prospects the compensation, suppression, and measurement technology of nonlinear error, which provides reference for research in related fields.