Automation of observation and positioning of fiducial marks is made possible with the application of image matching technique, developed through the cooperative research effort of computer vision and digital photogrammetry. The major problem in such automation effort is to minimize the computing time and to increase the positional accuracy. Except for scanning and ground control surveying, the interior orientation process was automated in this study, through the development of an algorithm which applies the image matching and image processing techniques. The developed system was applied to close-range photogrammetry and the analysis of the results showed 54% improvement in processing time. For fiducial mark observation during interior orientation, the Laplacian of Gaussian transformation and the Hough transformation were applied to determine the accurate position of the center point, and the correlation matching and the least squares matching method were then applied to improve the accuracy of automated observation of fiducial marks. Image pyramid concept was applied to reduce the computing time of automated positioning of fiducial mark.