Abstract: For the mosaic algorithm of traditional panoramic image, the Harris corner extraction or the Scale-Invariant Feature Transform (SIFT) feature matching are the most commonly used methods for resolving the parts of image overlap. But for the vehicle panoramic image mosaic algorithm, four images of fisheye distortion around a car are spliced by the algorithm of feature extraction. The algorithm has high computational complexity, low efficiency and is not able to satisfy the real-time requirements of vehicle equipment. Aiming at this problem, a mosaic algorithm for the panoramic images specially used in the vehicle system is proposed and simulated in matlab. The result is to maximize the efficiency of the algorithm and meet the requirements of real-time for the vehicle system. It can be achieved that the real traffic information is displayed for protecting the safety of the driver.