During terminal guidance phase of electro-optical precision-guided weapons, basic inverse compositional template matching algorithm can not deal with robust target tracking in high-dynamic environment due to its theoretical limitations. An inverse compositional tracking algorithm using multi-resolution motion prior is proposed to deal with this problem. The novel method divides tracking problem into two phases of off-line training and on-line tracking. During training phase, multi-resolution priori error Jacobian matrices are obtained according to the principle of “coarse-to-fine”. Using this priori knowledge, the new tracker can achieve robust tracking without increasing on-line computation complexity. Comparative experiments confirm the good convergence properties of the algorithm under high-dynamic environment. Meanwhile, the algorithm also has a good stability against the disturbances of target image rotation, scale and illumination changes, etc.