The invention utilizes a digital holographic adaptive optics (DHAO) system to replace hardware components in a conventional AO system with numerical processing for wavefront measurement and compensation of aberration by the principles of digital holography. Wavefront sensing and correction by DHAO have almost the full resolution of a CCD camera. The approach is inherently faster than conventional AO because it does not involve feedback and iteration, and the dynamic range of deformation measurement is essentially unlimited. The new aberration correction system can be incorporated into a conventional fundus camera with minor modification and achieve high resolution imaging of a retinal cone mosaic. It can generate profiles of the retinal vasculature and measure blood flow. It can also provide real-time profiles of ocular aberration during refractive (Lasik) surgery and generate three-dimensional maps of intraocular debris.