Digital Elevation Model (DEM) generation from remotely sensed imagery is crucial for a variety of mapping applications such as ortho-photo generation, city modeling. High resolution imaging satellites such as SPOT-5, IKONOS, QUICK-BIRD, ORBVIEW constitute an excellent source for efficient and economic generation of DEM data. However, prerequisite knowledge in the areas of sensor modeling, epipolar resampling, and image matching is required to generate DEM from these high resolution satellite imagery. From the above requirements, epipolar resampling emerges as the most important factors. Research attempts in this area are still in high demand and short supply. Another cause that adds to the complication of the problem is that most studies of DEM generation from IKONOS scenes have been based on rational function model. In this paper, we proposed a new methodology for DEM generation from satellite scenes using parallel projection model which is sensor independent, makes it possible for sensor modeling and epipolar resampling by only few control points. The performance and feasibility of the developed methodology is evaluated through real dataset captured by IKONOS.