In this theoretical study we demonstrate that entangled states are able to significantly extend the functionality of Hong-Ou-Mandel (HOM) interferometers. By generating a coherent superposition of parametric-down-conversion photons and spatial entanglement in the input channel, the coincidence probability measured at the output changes from a typical HOM-type dip (photon bunching) into much richer patterns including an anti-bunching peak and rapid oscillation fringes with twice the optical frequency. The considered system should be realizable on a single chip using current waveguide technology in the LiN bO3 platform. [4][5][6], and quantum algorithms [7,8]. The highly attractive hyperentangled states extend possibilities of quantum technologies, allowing new quantum communication protocols, superdense teleportation [10], and objects with higher dimensionality [9]. Therefore the generation and application of photon states with a high degree of entanglement and hyperentangled states is an intensely studied topic in quantum optics.An important element in a computational infrastructure based on photons are quantum interferometers which allow to measure the degree of indistinguishability of photons. Such interferometers can be realized using the well-known two-photon Hong-Ou-Mandel (HOM) interference, which was demonstrated in several systems [11][12][13][14][15][16][17].For practical large-scale applications in quantum information processing free-space set-ups are not very reliable because of the experimental complexity that is required to achieve and maintain a precise and stable adjustment between the elements and due to the significant size of such systems. However, due to their small size and high stability integrated quantum optical systems [18] are very promising in this direction. Furthermore, they provide an attractive platform for the realization of a wide range of functionalities including quantum simulations [19,20], boson sampling [21-23], quantum computation, and quantum communication processing [24].In this paper, we propose and analyze a device which can be realized on a single integrated platform and is able to manipulate the two-photon coincidence probability by interference and to create hyperentanglement. The photon pair generation is incorporated into the system using an on-chip parametric-down-conversion (PDC) [25][26][27][28] source. We theoretically show that the creation of spatially-entangled photons in a singlet Bell state is possible in such a device and that the entanglement leads to novel features in the coincidence probability. In particular, different regimes of bunching (HOM-type dips) and anti-bunching (singlet Bell state) and rapid interference fringes corresponding to twice the optical frequency are predicted. Simultaneously, frequency correlations are preserved in the system which leads to the creation a hyperentanglement, see Fig. 1. FIG. 1. Two photons generated in a PDC process have frequency correlations. The creation of spatial entanglement between the photons leads to a hy...