Abstract-This paper studies self-mixing interferometry (SMI) for measuring ablation depth during laser percussion drilling of TiAlN ceramic coating. The measurement performance of SMI was investigated in a large processing range producing blind microholes with depths below and beyond the average coating thickness. Signal characteristics of the measurement system were evaluated indicating sources of disturbance. The SMI measurements were compared with a conventional measurement device based on focus variation microscopy to evaluate the measurement error. The measurement error classes were defined, as well as defining the related error sources. The results depict that the measurement error was independent of the processing condition, hence the hole geometry and ablation rate. For 76% of cases, measurement error was below the intrinsic device resolution obtainable by simple fringe counting of half a wavelength (λ/2 = 0.393 μm).