Abstract: In order to eliminate the zero-order image and the conjugate image interference problems in the traditional algorithm for reconstruction of digital hologram, a new algorithm based on the total variation of the two-step iterative shrinkage thresholding (TwIST) was proposed combining compressive sensing theory with reconstruction of the digital hologram. According to the characteristics of the reconstruction component, the TwIST algorithm based on the total variation improves the quality of the reconstruction of hologram. The simulation results show that the hologram can be reconstructed from a sparse hologram with TwIST reconstruction algorithm a high quality image was reconstructed from 35% of a hologram and the peak signal-to-noise ratio (PSNR) of the reconstructed image was 36.46dB without zero-order image and conjugate image interference. The study is helpful for implementing real-time computer-generated hologram.