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In order to solve the well-known streaking effects of dynamic programming, an improved algorithm based on stereo matching technology is proposed to generate 3D building model. This algorithm obtains the feature points of the building by Harris corner detector and Canny edge detector to segment the scan lines of dynamic programming. Moreover, a linearly interpolated dissimilarity measure is introduced into the cost computation which further improves the matching speed. The experimental results show that the proposed algorithm can produce smooth and dense 3D points cloud model of building.