We conduct displacement/strain measurements on the microscale using light microscopy and digital image correlation (DIC). Errors in the measurements attributed to the optical arrangement and aberration induced at high magnification are identified using a warping function. Coefficients of the warping function are determined using a simple technique that employs a precisely made orthogonal cross-grating plate. By acquiring images of the grating and identifying the nodes using subpixel techniques, a relationship between the object and the image planes is established. Thus, the displacement/strain derived by means of DIC is corrected by converting the displacement components in the image plane to the coordinate system existing on the object’s surface. The approach is validated through a determination of the elastic properties of common metals; errors in estimation of the elastic modulus were within 4%. Although surface preparation generally plays a critical role in successful application of DIC, it is found to be of minimal importance under high magnification. Instead, the natural surface texture can be used with adjustment of the light incident angle. Results of the study show that DIC is a powerful tool in performing displacement/strain measurements on the microscale using a light microscope provided that an adequate correction is employed for image distortion.