Light-emitting　diode　(LED)　is　a　kind　of　short-coherence　light　source,　and　it　can　generate　time　gating　effect　and　reduce　the　speckle　noises　in　digital　holography.　Meanwhile,　it　can　cut　down　the　cost　of　the　setup　since　LED　is　cheaper　than　laser.　In　this　paper,　an　in-line　digital　holography　setup　was　designed　with　LED,　and　the　holograms　were　reconstructed　by　four-step　phase　shifting　method.　Comparing　with　the　phase　image　obtained　by　the　laser-based　setup,　results　show　that　the　phase　image　of　USAF　test　target　possesses　lower　speckle　noises　with　the　help　of　LED.　Finally,　we　reconstruct　a　series　of　intensity　images　with　different　depths　of　a　coin,　and　these　images　are　fused　to　get　a　synthesized　image　with　more　information.　©　(2013)　Trans　Tech　Publications,　Switzerland.