Light projection method is often used in measuring system for wire diameter, which is relatively simpler structure and lower cost, and the measuring accuracy is limited by the pixel size of CCD. Using a CCD with small pixel size can improve the measuring accuracy, but will increase the cost and difficulty of making. In this paper, through the comparative analysis of a variety of sub-pixel edge detection algorithms, polynomial fitting method is applied for data processing in measuring system for wire diameter, to improve the measuring accuracy and enhance the ability of anti-noise. In the design of system structure, light projection method with orthogonal structure is used for the detection optical part, which can effectively reduce the error caused by line jitter in the measuring process. For the electrical part, ARM Cortex-M4 microprocessor is used as the core of the circuit module, which can not only drive double channel linear CCD but also complete the sampling, processing and storage of the CCD video signal. In addition, ARM microprocessor can complete the high speed operation of the whole measuring system for wire diameter in the case of no additional chip. The experimental results show that sub-pixel edge detection algorithm based on polynomial fitting can make up for the lack of single pixel size and improve the precision of measuring system for wire diameter significantly, without increasing hardware complexity of the entire system.