This paper discussed the design, configuration and experiments of a high accuracy laser beam parameter (M2-factor) measurement system. The system utilizes a cooled digital CCD array as the detector and has the functions of background subtraction, noise determination, 2D and 3D energy distribution display, image histogram, beam width, divergence and M2-factor determinations. For testing the reliability of the above system a LD. pumped mode generator which can generate Hermite-Gaussian modes from TEM0.0 to TEM35.0 was developed. The M2-factor of different transverse modes were experimentally measured and the results agree with the theoretical estimation.