Abstract: In order to realize successfully 360°seamless panoramic image merging, the authors deeply analyze and study the existing theory of image merging and apply the method of finding the minimum error of gray value based on gray images to the colour images in reality so as to realize the image registration. The image edge determination technique is appcied to improve the traditional method of image registration so that its exactness is effectively enhanced. The difficiency of linear adjustment of colour difference in image stitching is theoretically discussed and the cause of the appearance of horizontal stripes after image stitching is analyzed. Finally, the authors propose the effective linear adjustment method of colour difference to eliminate the horizontal stripes after image stitching.