We observe nonequidistant oscillations in the correlation trace of the nonlinear signal in a four-wave mixing experiment when exciting the upper polariton branch between the A n = \ and the A n =2 excitons in CdSe. The quantum beats are described qualitatively and quantitatively taking into account propagation interference effects on the third-order nonlinear polarization, and the homogeneous dampings of the exciton polaritons are determined. 42.50.Md, 78.47.+p The investigation of quantum beats have been introduced in the early sixties as an ultrahigh resolution spectroscopy in atomic and molecular physics [1]. When two or more levels of atoms or molecules are excited by a short light pulse, a modulation of the fluorescence is observed, with the beat frequency v=AE/h, where AE is the level splitting.In solids the appearance of quantum beats resulting from the interference of extended electronic states is impeded by the occurrence of energy bands rather than discrete levels. However, the Coulomb interaction between electrons and holes infer the presence of exciton resonances just below the band edge. These levels can give rise to observation of quantum beats in linear resonance fluorescence measurements [2-4] as well as in nonlinear four-wave mixing [5-10] and induced magnetoabsorption [11]. The quantum beat measurements give information about energy splittings, oscillator strengths, dephasing times, etc.Strong coupling between photons and free excitons results in the formation of polaritons that are propagating modes conserving the polarization over macroscopic distances. This was recently demonstrated by Frohlich et al.[ 12] in a time-resolved experiment, where they performed linear transmission of a light pulse in the region of the \S exciton polariton in CU2O. The observed nonequidistant oscillations of the transmitted signal were explained as resulting from quantum beats between the lower and upper branches of the \S polariton, i.e., between propagating modes in a strongly dispersive medium.In the present Letter, we report the first observation of propagation interference effects on the third-order nonlinear polarization as measured in a coherent four-wave mixing experiment. As a model we have chosen the upper polariton branch in CdSe between the A" = \ and A n -2 exciton resonances. We observe nonequidistant oscillations in the correlation trace of the nonlinear signal that can be understood as quantum beats between continuously distributed propagating polaritons within the same strongly dispersive branch.We perform degenerate four-wave mixing in a selfdiffraction geometry. Two laser pulses with wave vectors k| and k2 create a grating, which diffracts photons from pulse 2 in the direction 2k2~-kj [13]. The laser source in the experiments is a mode-locked argon-ion laser which pumps synchronously a tunable dye laser (DCM) with a repetition rate of 82 MHz. The pulse duration (FWHM) is about 7 ps, but the time resolution in the coherent four-wave mixing is only limited by the coherence time of the laser pu...