To ensure the stability and accuracy of a large-scale optical module in the installation process, it is necessary to monitor and track the guide module. An adaptive scale target tracking algorithm based on dynamic template matching is proposed to address the problems of traditional template matching tracking algorithms in industrial applications, such as their inability to cope with target scale change and lack of a template adaptive update mechanism. First, the moving target area is identified from the first frame image, the center point of the target template is extracted, and the template image pyramid is generated. The template is updated using a dynamic template update strategy, and then the Kalman filtering algorithm is used to predict the potential target range in each subsequent frame. The similarity between the template image and the target image at each scale is calculated, and the scale factor with the highest similarity is taken as the scale change. In comparison to conventional algorithms, experiments on the OTB dataset demonstrate that the proposed algorithm can meet real-time requirements while increasing the coincidence rate by about 21 percentage points.