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 $LiNbO_3$ platform.
