We presents an edge-based point correlation algorithm for fast and stable visual inspection system. Conventional algorithms based on NGC(normalized gray-level correlation) have to overcome some difficulties in applying automated inspection systems to real factory environment. First of all, NGC algorithms involve highly complex computation and thus require high performance hardware for realtime process. In addition, lighting condition in realistic factory environments is not stable and therefore intensity variation from uncontrolled lights gives many troubles for applying NGC directly as pattern matching algorithm. We propose an algorithm to solve these problems, using thinned and binarized edge data, which are obtained from the original image. A point correlation algorithm with the thinned edges is introduced with image pyramid technique to reduce the computational complexity. Matching edges instead of using original gray-level image pixels overcomes problems in NGC method and pyramid of edges also provides fast and stable processing. All proposed methods are proved by the experiments using real images.