A handheld metrology imaging system and method. In one embodiment, the device may comprise an imaging portion, a display portion, a signal processing and control portion, an image capture activation element and a user interface. The user interface may comprise user adjustable video measurement tools configurable relative to an image on the display portion, and video tool adjusting elements. Measurement functions are provided that operate to provide a dimensional measurement result based on the configurations of the video measurement tools. The handheld device can be used to measure not only the normal parts which have traditionally been measured by conventional handheld tools such as a caliper or micrometer, but also very small or flat parts that are difficult to measure with conventional tools.