In this paper, an automatic target tracking system is implemented, and a tracking algorithm based on the differencing method is applied to the system. Furthermore, the algorithm includes a difference picture extraction algorithm which is applicable even to the dynamic scene which contains moving background. Estimation and prediction techniques are adopted for the tracking performance to be elevated. After the detection of a target coming into the any position of the field-of-view, the target is tracked and always made to be located at the center of screen. In addition, the proposed algorithm is tested and tested and compared with the algorithm based on the matching method.