In this study, a compact 20X magnification optical system was designed for application not only in hospitals and research institutions but also in hair salons and personal hair diagnostic devices. The system was developed with a measurement field diameter of 0.35 mm and a total optical system length of 125 mm to ensure practical usability. Through optical system analysis, it was confirmed that the designed system achieved an MTF of over 0.4 at 20 lp/mm, and the CCD optical axis tolerance exceeded 2 mm, providing sufficient alignment stability. A review of the microscope illumination structure confirmed that coaxial illumination alone was sufficient to observe the cuticle at the central region of the hair. Furthermore, experiments using the fabricated prototype clearly demonstrated structural changes in the cuticle depending on the degree of hair damage. In future research, by acquiring a larger dataset of hair samples with varying degrees of damage and thickness, AI-based analytical techniques could be utilized to quantitatively evaluate hair damage. This system holds significant potential for practical applications in precise, high-resolution hair diagnostics across various fields.