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Engineered non-Hermitian systems featuring exceptional points can lead to a host of extraordinary phenomena in diverse fields ranging from photonics, acoustics, opto-mechanics, electronics, to atomic physics. Here we introduce and present non-Hermitian dynamics of coupled optical parametric oscillators (OPOs) arising from phase-sensitive amplification and de-amplification, and show their distinct advantages over conventional non-Hermitian systems relying on laser gain and loss. OPO-based non-Hermitian systems can benefit from the instantaneous nature of the parametric gain, noiseless phase-sensitive amplification, and rich quantum and classical nonlinear dynamics. We show that two coupled OPOs can exhibit spectral anti-PT symmetry and an exceptional point between its degenerate and non-degenerate operation regimes. To demonstrate the distinct potentials of the coupled OPO system compared to conventional non-Hermitian systems, we present higher-order exceptional points with two OPOs, tunable Floquet exceptional points in a reconfigurable dynamic non-Hermitian system, and generation of squeezed vacuum around exceptional points, all of which are not easy to realize in other non-Hermitian platforms. Our results show that coupled OPOs are an outstanding non-Hermitian setting with unprecedented opportunities in realizing nonlinear dynamical systems for enhanced sensing and quantum information processing.