This paper presents an image stabilization technique which can be used as a very useful on-board unit of a vehicle. The proposed technique includes three steps. First, we detect two lane markings and their corresponding vanishing point from the input image. These two lane markings and their corresponding vanishing point are then used as the bases to calculate the camera motion parameters. The proposed motion estimation process can be used to solve the difficult problems such as feature point extraction and correspondence matching. In addition, the extracted road information can be used to tackle more advanced traffic problems. In the last step of our approach, a motion smoothing process is developed to remove some unwanted motion. This step is fairly important for obtaining very stable image sequences. The experimental results have shown that our method is indeed superb for stabilizing image sequences.