The telescope system based on Fresnel incoherent correlation optical path can obtain the digital hologram of the object at a long distance. Based on Fresnel diffraction theory, the imaging process of the point spread function (PSF) is calculated. The imaging principle, the lateral magnification and the reconstruction distance of the system are deduced. A digital holographic telescope system based on the Fresnel incoherent correlation on-axis light path is constructed, and the CCD is used to receive the holograms under the white light. The conjugate image and the zero-order image are eliminated by phase-shifting, and then the clear reconstruction image is obtained by the angular spectrum reconstruction algorithm. By introducing aperture diaphragm, we solve the problem, and improve the imaging quality. The resolution, depth of field and three-dimensional (3D) imaging characteristics of the system are verified experimentally. The experiment shows that the resolution is 16.00 lp/mm when the angle magnification is 2.0 and the distance is 900 mm.