This paper presents a rotational motion estimation and correction technique for digital image stabilization. An equivalent rotation model is derived so as to accommodate a combined rotational and the translational motion. Thanks to this simplification, the suggested estimation algorithm can directly find the rotational center using geometric characteristic of local motion vectors instead of using searching method. And we also present recursive version of frame to reference algorithm(FRA) for the real time implementation. The proposed DIS system does not require time consuming parameter searching process, while showing comparatively good performance compared with the previous ones. To show the effectiveness of the DIS scheme, the algorithm has been implemented on the DSP based hardware system and experimental results are also discussed.