Traditional image stabilization algorithms cannot be directly applicable for video sequences with small background transformation and jitter components. In this study, a panoramic image stabilization algorithm based on the Harris image mosaic is proposed. First, the Prewitt operator was used to extract the edge information of the image, and then, Harris feature points were detected. Subsequently, both NCC and RANSAC algorithms are combined to achieve the exact matching of feature points between images, and the weighted average fusion method is used for image fusion. Finally, the fused panoramic image is clipped to complete image compensation and output a stable video sequence. The experimental results show that the improved Harris algorithm improves the algorithm efficiency and number of correct feature points. Moreover, the image stabilization algorithm in this study demonstrated good real-time performance, which can effectively eliminate video jitter and output stable video sequences.