Since Tabor showed the application of spherical indentation approach to obtain material post-yielding true stress-strain curves, the indentation technique has been investigated to determine mechanical properties besides hardness measurement. Accurate measurement of indentation parameters is critical in the determination of surface mechanical properties using indentation method. In this research, an in-situ optical Transparent Indenter Measurement (TIM) method was developed for material inspection and mechanical property measurement. Using spherical indentation, residual surface deformation after spherical indentations was first investigated on IN783 superalloy samples using phase-shifting Twyman-Green and moire´ interferometry. The elastic-plastic boundary was identified based on the characteristic of the out-of-plane deformation fringe patterns. Then using the measured in-plane deformation, yield strength of the tested material was obtained. Using the TIM system, real-time in-situ measurement of indentation-induced out-of-plane deformation and contact radius were directly measured during an indentation process. Coupled with elastic recovery theories and 2D finite element analyses, a procedure was developed to determine the material stress-strain curve. It is also demonstrated that the TIM method is suitable for debonding inspection of thin film materials.