Cloud droplets size distribution (DSD) is one of the significant characteristics for liquid clouds. It plays an important role for the aerosol–droplet–cloud mechanism and variation in cloud microphysics. However, the minuscule sampling space is insufficient for the observation of whole DSD when using high-magnification optical systems. In this paper, we propose an observation method for cloud droplets ranging from 2 to 16 μm, by which the balance relationship between sampling space and optical magnification is realized. The method combines an in-line digital holographic interferometer (DHI) with the optical magnification of 5.89× and spatial stitching technique. The minimum size in DSD is extended to 2 μm, which improves the integrity of size distribution. Simultaneously, the stability of DSD is enhanced by increasing the tenfold sampling volume of cloud droplets. The comparative experiment between the in-line DHI and fog monitor demonstrates that the DSD obtained by this method is reliable, which can be used for the analysis of microphysical parameters. In the Beijing Aerosol and Cloud Interaction Chamber (BACIC), the observation results show that the size of cloud droplets follows the Gamma distribution, which is consistent with the theoretical DSD. The results of cloud microphysical parameters indicate that each pair of parameters has a positive correlation, and then the validity of observation method is confirmed. Additionally, the high-concentration aerosol condition significantly mitigates the effect of random turbulence and enhances the robustness of the microphysical parameter data.