A wide dynamic range, high precision, non-contact and large bandwidth angular displacement measurement (ADM) is greatly necessary for the applications such as industrial control and military equipment. This paper proposes a simple and effective ADM method based on Doppler Effect, heterodyne detection and diffuse reflection, which can fulfill these requirements simultaneously. Two beams of parallel light generated by a pair of laser Doppler vibrometers are incident upon the surface of rotational target, then data processing unit acquires the velocity of dual laser incident points on the moving target, and resolves the rotational angular displacement and translation displacement of target through the relationship between dual laser beams dynamically. Several major measurement errors that may affect the ADM accuracy are analyzed. A high precision rotary table is used as an angular displacement standard to verify the measurement range and accuracy, the verification experiment shows that the measurement range is not less than ±10° and the measurement accuracy is 0.0362° based on the method. After using a polynomial error compensation, the measurement accuracy can be promoted to 0.0088°, and this compensation method can be applied to real time measurement.