Digital holography (DH) is a potentially disruptive new technology for many areas of imaging science, especially in microscopy and metrology. DH offers a number of significant advantages such as the ability to acquire holograms rapidly, availability of complete amplitude and phase information of the optical field, and versatility of the interferometric and image processing techniques. This article provides a review of the digital holography, with an emphasis on its applications in biomedical microscopy. The quantitative phase microscopy by DH is described including some of the special techniques such as optical phase unwrapping and holography of total internal reflection. Tomographic imaging by digital interference holography (DIH) and related methods is described, as well as its applications in ophthalmic imaging and in biometry. Holographic manipulation and monitoring of cells and cellular components is another exciting new area of research. We discuss some of the current issues, trends, and potentials.