Defect inspections of Compact Camera Module (CCM) are made mainly by human inspectors. For improving the efficiency and precision, it’s very necessary to develop an automatic inspection system for CCM. It can check lens focus status and inspect defects including white defect, black defect, line defect, color defect, and dim defect in manufacturing process. It has a complex programmable logic device, and the camera link and the frame grabber are used to transfer and store images to PC. Various image processing algorithms are developed to analyze the captured image from each test chart and to find and verify the defects of camera modules. The experimental results show that the proposed system is able to reliably inspect various types of defects with high precision and high speed in real manufacturing condition.