The traditional Michelson interference fringe manual counting method has poor stability and largeartificial error.A CCD based interference fringe collection method is proposed, and the image processing ointerference stripe is performed in Wave Ruler of Matlab.According to the periodic change of the brightnessand shade of the interference fringe, the interference fringe is processed and counted through the steps ofremoving background noise ,binarization threshold filtering,removing small noise and fringe optimization ,so asto measure the tiny displacement of the object.Experimental results show that this method optimizes Michelsoninterference method to measure object micro-displacement,and the minimum measurement error reaches 0.4%which reduces the error in the measurement process and improves the measurement stability.