We have used a digital in-line holography system with numerical reconstruction for 3D particle field extraction. In this system the diffraction patterns (holograms) are directly recorded on a charge-coupled device (CCD) camera. The numerical reconstruction is based on the wavelet transformation method. A sample volume is reconstructed by computing the wavelet components for different scale parameters. These parameters are related to the axial distance between a particle and the CCD camera. The particle images are identified and localized by analyzing the maximum of the wavelet transform modulus and the equivalent diameter of the particle image. The general process for the 3D particle location and data processing method are presented. As in classical holography we found that the signal to noise ratio depends only on the shadow density. Nevertheless, we show that both the volume depth and the shadow density affect the percentage of extracted particles.