In these days, image mosaic is getting interest in the field of advertisement, tourism, game, medical imaging, and so on with the development of internet technology and the performance of personal computers. The main problem of mage mosaic is searching corresponding points correctly in the overlapped area between images. However, previous methods requires a lot of CPU times and data processing for finding corresponding points. And they need repeated recording with a revolution of 360 degree around objects or background. This paper presents a new image mosaic method which generates a panorama image from a video sequence recorded by a general video camera. Our method finds the corresponding points between two successive images by using a new direction oriented 3­step block matching methods. Experimental results show that the suggested method is more efficient than the methods based on existing block matching algorithm, such as full search and K­step search algorithm.