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In this paper, we present a new method for automatically and efficiently generating stereoscopic mosaics by seamless registration of images collected by a video camera mounted on an airborne platform. Using a parallel-perspective representation, a pair of geometrically registered stereo mosaics can be precisely constructed under quite general motion. A novel parallel ray interpolation for stereo mosaicing (PRISM) approach is proposed to make stereo mosaics seamless in the presence of obvious motion parallax and for rather arbitrary scenes. Parallel-perspective stereo mosaics generated with the PRISM method have better depth resolution than perspective stereo due to the adaptive baseline geometry. Moreover, unlike previous results showing that parallel-perspective stereo has a constant depth error, we conclude that the depth estimation error of stereo mosaics is in fact a linear function of the absolute depths of a scene. Experimental results on long video sequences are given.