We have used a digital in-line holography system with numerical reconstruction to determine 2D velocity fields in several slices of a sample volume. This system records directly on a charge-coupled device (CCD) camera the diffraction patterns of small particles illuminated by a double-pulse laser diode. The numerical reconstruction is based on the wavelet transformation method. A slice 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 analysing the maximum of the wavelet transform modulus and the width of the particle image (L-50). Afterwards, a point-matching algorithm is applied to the set pairs containing the particles. This step is followed by velocity vector extraction. The details of the velocity extraction and the data processing method are presented and the simulations and experimental results are discussed.