Abstract: As an image representation of virtual environment，panorama has important applications in Virtual-Reality and Computer Vision．Generally，to get a panorama with high quality， we need some special，expensive and carefully calibrated equipment．Image Mosaic is an inexpensive and flexible approach to get panorama．In this paper，a novel panorama composition algorithm is presented．By rotating a camera around a vertical axis and composing the video frames， our algorithm can create cylindrical panoramic images with ideal quality．Our algorithm needs no calibration，imposes no strict limit on camera rotation angle between consecutive frames．And at the same time，this algorithm is not sensitive to the exposure difference between consecutive frames．