This paper proposes a novel video stitching method that improves real-time performance and visual quality of a multi-camera video surveillance system. A two-stage seam searching algorithm based on enhanced dynamic programming is proposed. It can obtain satisfactory result and achieve better real-time performance than traditional seam-searching methods. The experiments show that the computing time is reduced by 66.4% using the proposed algorithm compared with enhanced dynamic programming, while the seam-searching accuracy is maintained. A real-time local update scheme reduces the deformation effect caused by moving objects passing through the seam, and a seam-based local color transfer model is constructed and applied to achieve smooth transition in the overlapped area, and overcome the traditional pixel blending methods. The effectiveness of the proposed method is proved in the experiements.