The precise angle monitoring is a very important metrology task for research, development and industrials applications. Autocollimator is one of the most powerful and widely applied instruments for small angle monitoring, which is based on the principle of geometric optics. In this paper we introduce a new precise angle monitoring system, Pencil-beam Angle Monitor (PAM), base on pencil beam interferometry. It’s principle of operation is a combination of physical and geometrical optics. The angle calculation method is similar to the autocollimator. However, the autocollimator creates a cross image but the precise pencil- beam angle monitoring system produces an interference fringe on the focal plane. The advantages of the PAM are: high angular sensitivity, long-term stability character making angle monitoring over long time periods possible, high measurement accuracy in the order of sub-microradian, simultaneous measurement ability in two perpendicular directions or on two different objects, dynamic measurement possibility, insensitive to the vibration and air turbulence, automatic display, storage and analysis by use of the computer, small beam diameter making the alignment extremely easy and longer test distance. Some test examples are presented.