A novel dual beam heterodyne Laser Doppler Vibrometer (LDV) in conjunction with FM demodulators, which utilizes a residual beam to eliminate the perturbationdue due to the vibrometer body vibration without any external reference surface, has been developed. Residual laser beam from the beam splitter is used to pick up the vibration of damper, which is mounted in the vibrometer, and combined with reference beam at the photodetector. The output signal of this detector and main signal are processed to extract the object vibration, using a least mean square adaptive algorithm. It is shown experimentally that the body vibration of 1-5 Hz can be effectively removed from the measured signal using DSP technology to extract unperturbed 100 Hz original signal.