A new stitching algorithm based on area feature and cross correlation for the sequence image with transformation of translation,rotation and isometric scaling is proposed.Firstly, feature areas are extracted by segmenting the image with the iterative threshold method,and pairs of homonymy areas through area features are established;secondly,the algorithm of the intensity around the feature pointscentroids of areas is used to calculate the Cross correlation;thirdly, the accurate transformation is obtained and the sequence images are stitched.The experimental result demonstrated the algorithm is accurate in matching.