In order to solve the problem of space extended target tracking on the condition that the background of image is simple, the texture of target is lack, and the revolving and translating target is distorted gradually, one method of target tracking based on the inertia ellipse and pose compensation is proposed. The inertia ellipse is used to measure the pose of target accurately. The pose and location are compensated in uniform reference frame, and the principle of the closest distance is adopted to feature point matching. It is approached that the extended target is tracked accurately. Furthermore, experiments involving emulating image and real image indicate that the proposed method is effective, the error of tracking transferred target is less than 0.26 pixel, the error of tracking revolving target is less than 0.28 pixel, and the error of tracking real extended space target is less than 0.30 pixel, which indicates that the proposed method is effective on tracking the extended space target.