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Directing against the huge amounts of calculation for traditional target tracking, a fast target tracking algorithm based on image correlation matching is proposed in this paper. Firstly, for the continuity of movement target in the real-time image sequences, the image matching algorithm based on wavelet transform is used to match the first frame image to determine the best match point, then the best match point is used as initial point and combined with prediction characteristics of Kalman filter to predict the possible position of the target on the next frame and optimal matching point of the next frame. Eventually, it realized a fast and accurate target tracking algorithm. The experimental results show that the proposed matching algorithm can provide favorable tracking performance and improve the speed and accuracy of target tracking, which meets the real-time request of system.