In this study, a displacement measurement method based on digital moiré fringe is described and experimentally demonstrated. The method is formed by only one grating with a constant pitch. First, the magnified grating image is received by an imaging array and is sent to a computer. Then, the digital moiré fringes are generated by overlaying the grating image with its mirrored one. Finally, a specifically designed algorithm is used to obtain the fringes’ phase difference before and after movement and calculate the displacement. This method has the effects of amplifying displacement and averaging the grating lines error, the same as the traditional moiré technique using two pieces of gratings. At the same time, the proposed system is much easier to assemble and the measurement resolution can be set more flexibly. One displacement measuring system based on this method was built up. Experiment results show that its measurement errors are less than 0.3 μm and less than 0.12 μm at the resolutions of 0.1 μm and 0.03 μm, respectively. In this study, a displacement measurement method based on digital moiré fringe is described and experimentally demonstrated. First, the magnified grating image is received by an imaging array and is sent to a computer . Then, the digital moiré fringes are generated by overlaying the grating image with its mirrored one. Finally, a specified designed algorithm is used to obtain the fringes’ phase difference before and after movement and calculate the displacement. This method has the effects of amplifying displacement and averaging the grating lines error, the same as the traditional moiré technique using two pieces of gratings. At the same time, the proposed system is much easier to assemble and the measurement resolution can be set more flexibly. One displacement measuring system based on this method was built up. Experiment results show that its measurement errors are less than 0.3 μm and less than 0.12 μm at the r esolutions of 0.1 μm and 0.03 μm, respectively.