This work investigates a holographic imaging approach combined with a compressive signal reconstruction framework to localize small particles on planar substrate using FDTD simulation technique. Holography naturally spread out the very weak scattering signal and compressive sensing technique eliminates noises, which helps to give back a clean reconstruction of the position of that particle. The reliability and accuracy of using holography and compressive sensing is also investigated by running simulation with different levels of denoising intensity and various amount of noise.