This master thesis covers a solution to the image stabilization problem that does not require accelerators or gyros. The use of a fast and simple feature based algorithm to remove unwanted video motion makes it suitable for use in mobile equipment. The algorithm estimates the camera motion from the incoming video stream and compensates for unwanted translation and rotation. Experimental results are included from real life situations. The proposed algorithm can be used in real time applications, due to the low memory usage and low computational complexity.