A high-speed beacon detecting and processing system taking TMS320DM6437 as internal RAM is designed. The internal RAM of TMS320DM6437 is so small that the centroid tracking algorithm can’t run quickly. To solve the problem, a new image processing strategy based on centroid tracking algorithm is put forward, which can keep the original tracing precision and reliability of centroid tracking algorithm and can be used for a DSP system with small internal RAM.