In order to achieve the space target detection and identification based on the satellite photoelectric imaging system, an image processing system is designed with combination of a leading processor digital signal processor (DSP) and an auxiliary processor field programmable gate array (FPGA). A method of the satellite targets recognition is put forward. The targets are detected with the modified differential method in sequential images on the starry background, in the absence of a priori knowledge conditions. The satellites are identified with the minimum distance classifier and their templates are acquired based on the different profiles of the satellites and natural stars. Therefore, the rapid detection and identification of the satellite targets can be achieved via the template matching algorithm. Experimental results show that compared with traditional method, the running time is reduced by 15%~40%. It satisfies the accuracy and real-time requirement of satellite target detection and identification with practical value.