The implementation of a polarization-based spatial heterodyne interferometer (SHI) is described. While a conventional SHI uses a Michelson interferometer and diffraction gratings, our SHI exploits mechanically robust Wollaston prisms and polarization gratings. A theoretical model for the polarization SHI is provided and validated with data from our proof of concept experiments. This device is expected to provide a compact monolithic sensor for subangstrom resolution spectroscopy in remote sensing, biomedical imaging, and machine vision applications.