In this paper, a two-dimensional (2-D) planar encoder based on two parallel gratings, which includes a scanning grating and scale grating, is presented. The scanning grating is a combined transmission rectangular grating comprised of a 2-D grating located at the center and two one-dimensional (1-D) gratings located at the sides. The grating lines of the two 1-D gratings are perpendicular to each other and parallel with the 2-D grating lines. The scale grating is a 2-D reflective-type rectangular grating placed in parallel with the scanning grating, and there is an angular difference of 45° between the grating lines of the two 2-D gratings. With the special structural design of the scanning grating, the encoder can measure the 2-D displacement in the grating plane simultaneously, and the measured interference signals in the two directions are uncoupled. Moreover, by utilizing the scanning grating to modulate the phase of the interference signals instead of the prisms, the structure of the encoder is compact. Experiments were implemented, and the results demonstrate the validity of the 2-D planar grating encoder.