A new type of two-wavelength interferometer for the measurement of absolute distance is described. Since the wavelength of the laser diode is temporally multiplexed, only one laser diode light-source is required, thus eliminating the necessity of aligning two independent optical axes. Absolute distance is calculated from the difference of the phases in the interference signals generated by each wavelength. The self-correlation function is applicable in our system for detecting this phase-difference between two kinds of interference signals, thereby, the signal processing is very simple and there is a possibility that the real-time distance measurement becomes possible in our new method.