As the research on space-borne LiDAR in China is insufficient, we explore the hybrid source photogrammetry of optical remote sensing images and space-borne LiDAR. The surface-element trajectory matching of digital elevation model (DEM) is performed on photon data of space-borne LiDAR to establish the correspondence between the trajectory of laser altimetry points and the digital surface model (DSM) generated by remote sensing images. Then, the selected ground photons and high-resolution optical remote sensing images are combined with the joint block adjustment method. By the iterative solution method considering coordinate errors of laser altimetry points, the stereo positioning accuracy of satellite remote sensing images can be promoted. The data ATL03 of space-borne LiDAR, as well as satellite remote sensing images from Gaofen-7 (GF-7) and Tianhui-3 (TH-3), are used to verify the performance of the method. The experimental results indicate that the proposed method can effectively improve the stereo positioning accuracy of satellite remote sensing images without ground control points, and the elevation accuracy can reach 1.258 m.