In this paper, a volume phase holographic optical element based digital holographic interferometer is designed and used for quantitative phase imaging of biological cells [white blood cells, red blood cells, platelets, and Staphylococcus aureus (S. aureus) bacteria cells]. The experimental results reveal that sharp images of the S. aureus bacteria cells of the order of ${\sim}{1}\;{\unicode{x00B5}{\rm m}}$∼1µm can be clearly seen. The volume phase holographic grating will remove the stray light from the system reaching toward the grating and will minimize the coherent noise (speckle noise). This will improve the sharpness in the image reconstructed from the recorded digital hologram.