One of the challenges of electron density measurements of an atmospheric pressure plasma (APP) with a laser interferometer is the significant and unwanted phase shift caused by changes in the neutral gas density. These unwanted phase shifts can be mitigated and plasma density measured using an interferometer architecture called a dispersion interferometer (DI). A DI is composed of two nonlinear orientation patterned GaAs crystals for frequency doubling and measures the phase shift induced by a plasma in the interference signal between two second-harmonic beams. Measurement of plasma dynamics or a short plasma pulse in less than a millisecond is enabled with heterodyne detection in a DI using an acousto-optic cell with a frequency of 40 MHz. This heterodyne DI (HDI) is targeted to measure APPs in an electron density range of 1020–1024 m−3. The HDI achieves a line-integrated density resolution of 2 × 1015 m−2 (a phase resolution of 0.005°) with a time constant of 1 μs using ensemble averaging techniques.