The photon counting lidar earth observation means denoted by ICESat-2 have the features of small ground footprints, high repetition frequency, and multibeams. The plane accuracy and flight direction data density of acquired point cloud have been greatly improved. As a result, it can be applied as a novel three-dimensional control condition to enhance the precision of satellite image location. To address the application problem of photon point clouds without synchronous image recording plane position, the research suggests a technique to enhance the positional accuracy of satellite images supported by spaceborne photon counting laser point clouds. First, the three-dimensional terrain profile matching approach is used to achieve precise registration between photon point cloud data and digital surface model (DSM) for the automatic generation of satellite stereo images. Then, terrain feature points are retrieved from the photon profile point cloud based on slope change, and the common terrain feature control points are produced by combining several terrain features of DSM. Finally, the terrain feature points as planimetric and elevation control conditions are added into the satellite image block adjustment with additional parameters to further improve positioning accuracy. Experimental results on the ZY-3 satellite images and ATLAS ATL03 data in Shaanxi Province demonstrate that the proposed method can efficiently improve the accuracy of the ZY-3 image plane and elevation positioning compared to completely uncontrolled positioning method and shuttle radar topography mission (SRTM) data-assisted positioning method. The proposed method's efficacy and viability are confirmed by the fact that the increasing rates of plane accuracy and elevation positioning accuracy over SRTM data can reach 60% and 34%, respectively.