In recent years, we have seen significant improvements in the digital sun sensor (DSS) design enabled by advanced micro-systems fabrication and optical sensing technologies. In this paper, we propose a simple single-slit DSS concept with improved accuracy using sub-pixel interpolation. In considering the DSS design, we focused on several characteristics of the sun sensor, including field-of-view, sensor accuracy, complexity, and computational requirements. First, the optimal mask design was determined based on the simple geometry of the slit size, mask height and pixel width. Then, a two-step pixel read-out algorithm was implemented for sub-pixel level interpolation to determine the illumination ratio using 1-, 2-, 4- and 8-bit readouts. Lastly, the improved DSS was integrated with typical CubeSat, commercial-grade attitude sensors suite and a simple TRIAD method to determine the attitude of a CubeSat in LEO. Compared to standard 1-bit read-out mode (0.32deg RMSE), 8-bit DSS achieves better than 0.01deg RMSE). In a CubeSat scenario, improvements in attitude knowledge and control accuracy are marginal when using TRIAD, due to the significantly lower accuracy in other CubeSat-scale sensors (magnetometer, for example).