Based on the optical system using a monochrome charge coupled device (CCD) to record digital color hologram and diffraction’s numerical calculation theory, the common algorithms for digital color holographic wavefront reconstruction is reviewed comprehensively, and an important improvement on an algorithm applied only to static physical detection is made. The improvement not only eliminates the frequency spectrum aliasing effect to the reconstructed wavefield, but also lets the algorithm appropriate for dynamic physical detection of real-time digital holography. Finally, the research work is promoted in the optical system, which using a color CCD to record digital color hologram, and gives an example of reconstructed object color image under illumination of three color lights.