readout using coherent light with fidelity above 99% has been achieved by using quantum-limited parametric amplifiers such as the Josephson Parametric Converter (JPC). However, further improvement of such measurement is fundamentally limited by the vacuum fluctuations of the coherent light used for readout. In this work we measure a transmon qubit/cavity system with an unbalanced two-mode squeezed light interferometer formed from two JPCs. The first amplifier generates two-mode squeezed vacuum at its output, which is coherently recombined by the second amplifier after one branch is shifted and displaced by the transmon’s state after it interacts with the qubit/cavity system on one arm of the interferometer. We have observed a 44% improvement in power Signal-to-Noise Ratio (SNR) of projective readout compared to that of coherent light readout in the same system. To investigate the quantum properties of the two-mode squeezed light in the system, we also studied weak measurement and found, surprisingly, that tuning the interferometer to be as unprojective as possible was associated with an increase in the quantum efficiency of our readout relative to the optimum setting for projective measurement. These enhancements may enable remote entanglement with lower efficiency components in a system with qubits in both arms of the interferometer.