The vehicle panoramic scanning imaging system has the characteristics of single-camera splicing imaging and 360^∘ full field view, while the traditional electronic image stabilization algorithm only applies to random camera vibration. In this regard, this paper uses the distance transform algorithm to extract the obvious area of the distance feature for template matching, and cooperates with the image pyramid to accelerate the matching. Finally, in the image fusion stage, the linear weighted fusion algorithm is used to obtain the final stitched panoramic image. Experimental results show that the algorithm used in this paper improves the image stabilization quality and takes into account the speed of image stitching, making the human eye more comfortable and stable when observing the video sequence target. This algorithm basically meets the needs of engineering applications and provides a guarantee for subsequent target detection and positioning.