The paper presents improvements in magnetic domain investigation with the conventional Bitter colloid method achieved thanks to the application of a digital image processing (DIP) system. The system capabilities are demonstrated referring to selected examples of the magnetic structure in a thin nickel–iron film, sintered Nd–Fe–B permanent magnets, a ferrimagnetic garnet plate, and bulk cobalt monocrystals. With the aid of our DIP system, high quality domain images, which were not possible before, could be obtained and analyzed in more detail. As a consequence, the previously reported problems related to the study of the domain configuration in soft magnetic materials and at the basal surface of bulk cobalt monocrystals by the conventional Bitter pattern technique were overcome and improvements over earlier results were made.