The present work describes the use of a photorefractive correlator in the measurement of in-plane displacement. A
correlation technique has been proposed and demonstrated for precise displacement measurement by recording objective
speckles. Speckle interference patterns are generated in situ using a converging beam illumination and two-beam coupling
recording geometry in a photorefractive barium titanate crystal. Intermediate digital interfacing through an electrically
addressed spatial light modulator enables one to introduce digital processing techniques viz., thresholding for improving
the fringe contrast resulting in a better quality of correlation output required for measurement accuracy and reliability. This
also increases the range of displacement measurement. In-plane object displacement being proportional to the separation
between the correlation peaks, a measure of it gives the magnitude of object displacement. Both simulation and xperimental studies have been performed on double as well as multiple exposure speckle interference patterns. The effect of threshold binarization on speckle correlation has also been studied. The method promises high degree of accuracy and increased range for displacement measurement in real-time.