This paper proposes a new method to process panoramic image stitching using SURF(Speeded Up Robust Features). Panoramic image stitching is considered a problem of the correspondence matching. In computer vision, it is difficult to find corresponding points in variable environment where a scale, rotation, view point and illumination are changed. However, SURF algorithm have been widely used to solve the problem of the correspondence matching because it is faster than SIFT(Scale Invariant Feature Transform). In this work, we also describe an efficient approach to decreasing computation time through the homography estimation using RANSAC(random sample consensus). RANSAC is a robust estimation procedure that uses a minimal set of randomly sampled correspondences to estimate image transformation parameters. Experimental results show that our method is robust to rotation, zoom, Gaussian noise and illumination change of the input images and computation time is greatly reduced.