Laser interferometry is widely used as a measuring system in many fields because of its high resolution and ability to measure a broad area in real-time all at once. In conventional LASER interferometry, for example Out-of-plane ESPI(Electronic Speckle Pattern Interferometry), In plane ESPI, Shearography and Holography, it uses PZT or other components as a phase shift instrumentation to extract 3D deformation data, vibration mode and others. However, in most cases PZT has some disadvantages, which include nonlinear errors and limited time of use. In the present study, a new type of LASER interferometry using a laser diode is proposed. Using LASER Diode Sinusoidal Phase Modulating (LD-SPM) interferometry, the phase modulation can be directly modulated by controlling the LASER Diode injection current thereby eliminating the need for PZT and its components. This makes the interferometry more compact. This paper reports on a new approach to the LD Modulating interferometry that involves four-buckets phase shift method. This study proposes a four-bucket phase mapping algorithm, which was developed to have a guaranteed application, to stabilize the system in the field and to be a user-friendly GUI. In this paper, the theory for LD wavelength modulation and sinusoidal phase modulation of LD modulating interferometry is shown. Four-bucket phase mapping algorithm is then introduced.