This paper presents a polarization grating based circular subaperture stitching interferometer. The system can be used for small F/# concave surface tests with a large F/# transmission sphere, where F/# is the ratio of focal length to aperture. A polarization grating was employed to deflect the incident beam for subaperture scanning by its axial rotation instead of a multi-axis motion-control system. Compared with the traditional subaperture stitching interferometric system, the system proposed in this paper is smaller in size and reduces the measurement error introduced by mechanical adjustment. Using a virtual interferometer model and a virtual–real combination algorithm to remove the retrace error, the full-aperture figure error can be directly obtained without the need for a complex stitching algorithm. The feasibility of the algorithm was verified, and the measurement error caused by the modeling error was analyzed by simulation. The capability of the polarization grating to scan subapertures was experimentally confirmed, and possible solutions to some engineering challenges were pointed out. The research in this paper has pioneering and guiding significance for the application of polarization grating in interferometry.