Abstract: A system for stabilizing video signals generated by a video camera which may be mounted in an unstable manner includes a digital processing means for manipulation of each incoming image that attempts to overlay features of the current image onto similar features of a previous image. A mask is used that prevents parts of the image that are likely to cause errors in the overlaying process from being used in the calculation of the required movement to be applied to the image. The mask may include areas where small movements of the image have been detected, and many also include areas where image anomalies including excess noise have been detected. The invention also discloses means for dealing with wanted movements of the camera, such as pan or zoom, and also discloses means for dealing with the edges of video signals as processed by the system. A method is also disclosed.