Military camera equipment has a problem that observability is inferior due to various shaking factors. In this paper, we propose an image stabilization algorithm considering performance and execution time to solve this problem and implemented it in Zynq SoC. We stabilized both the simple shaking in the fixed observation position and the sudden shaking in the moving observation position. The feature of the input image is extracted by the Sobel edge algorithm, the subblock with the large edge data is selected, and the motion vector, which is the compensation reference, is calculated through template matching using the 3-step search algorithm of the region of interest. In addition, the proposed algorithm can distinguish the shaking caused by the simple shaking and the movement by using the Kalman filter, and the stabilized image can be obtained by minimizing the loss of image information. To demonstrate the effectiveness of the proposed algorithm, experiments on various images were performed. In comparison, PSNR is improved in the range of 2.6725~3.1629 (dB) and image loss is reduced from 41% to 15%. On the other hand, we implemented the hardware-software integrated design using HLS of Xilinx SDSoC tool and confirmed that it operates at 32 fps on the Zynq board, and realized SoC that operates with real-time processing.