Image stabilization aims to reduce the amount of image blur due to human handshake or even preventing the chances of a blur. This technique can allow people to take good pictures by camera phone easily. Because almost everyone owns a mobile phone today, many people use camera phone under various conditions. Handshake is one of the most important reasons to produce blurred image, so this technique has played an essential role in today’s camera phone design. In this thesis, we present a digital image stabilization algorithm for camera phone based on an image composition technique using four source images. The method is to take four images with lower exposure time and then combine these four pictures. This method can reduce the amount of image noise and compose a sharper image from four source images. This method is simple and fast enough to be used by general camera phone.