Abstract: This disclosure relates generally to speckle image analysis, and, more particularly, to a system and method for imaging of localized and heterogenous dynamics using laser speckle. Existing speckle analysis techniques do not offer the capability to achieve both the dynamic phenomenon which carries over a specific time duration and localizing the extent of the activity at a single, chosen instant of time simultaneously. The present disclosure records an image stack consisting of N speckle images sequentially over a period, divides the image stack into a spatial window and a temporal window, converts the speckle intensity data comprised in the spatial window into a column vector. Construct a diagonal matrix and extract a singular value from the diagonal matrix, then defines a speckle intensity correlation metric using the plurality of singular values, defines a speckle activity and generates a speckle contrast image by graphically plotting the speckle activity values.