An image processor in an image capture device compensates for the effects of undesirable camera shakes occurring during video capture The image processor receives a pair of source frames representing images of a scene, generates a pair of subsampled frames from the source frames, and computes a coarse displacement of the captured image due to camera shakes by comparing the two subsampled frames. The image processor may then refine the determined coarse displacement by comparing the two source frames and a bound determined by an extent of subsampling, and compensate for the displacement accordingly. Display aberrations such as blank spaces caused due to shifting are also avoided by displaying only a portion of the captured image and shifting the displayed portion to compensate for camera shake. The image processor also recognizes displacements due to intentional camera movement, and does not correct for such displacements.

 
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