A system for mosaicing endoscope images has an endoscope, a computer and a monitor. The endoscope has a relatively wide viewing angle such as 30 degrees to capture video images of a target area. The computer determines feature points on the captured video frames, aligns the video images in a common reference frame and displays them as one mosaiced image while dynamically extending the scene synchronous with the movement of the endoscope. The system creates a distortion free near real-time panorama of the endoscope scene using the wide angle view endoscope, and is useful for physicians while performing endoscopic procedures since the field of view can be extended to provide a better visual-spatial orientation.