This paper presents a new algorithm of path planning and obstacle avoidance for autonomous mobile robots with vision system that is working in unknown environments. Distance variation technique is used in path planning to approach the target and avoid obstacles in work space as well . In this approach, the Sobel operator is employed to detect edges of obstacles and the distances between the mobile robot and the obstacles are measured. Fuzzy rules are used for trajectory planning and obstacle avoidance to improve the autonomy of mobile robots. It is shown by computer simulation that the proposed algorithm is superior to the vector field approach which sometimes traps the mobile robot into some local obstacles. An autonomous mobile robot with single vision is developed for experiments. We also show that the developed mobile robot with the proposed algorithm is navigating very well in complex unknown environments.