A nonlinear interferometer is a device where two nonlinear effects can enhance or suppress each other. For example, if parametric down-conversion occurs in each of the two successive nonlinear crystals, the nonlinear interference affects the mode structure of the output light. The output light is very sensitive to the phase introduced between the crystals. This allows one to perform phase measurements with the accuracy exceeding classical limits. Moreover, the second nonlinear crystal, by amplifying the quantum state generated by the first nonlinear crystal, can greatly improve the reconstruction of this quantum state.