A multi-channel video display system based on a high performance DSP, TMS320DM642, has been put forward in this paper. Compared with the traditional video systems, this system provides a broader view for users and more information in one frame of output video flow. In the system, SIFT features are employed for image matching, on which we develop the automatic image stitching procedure. Both matching and stitching are implemented on the DSP, the former in the system initialization stage and the latter in the whole working process. In addition, several optimization approaches based on the DM642's properties are carried out to make the system work in real-time. Experiments validate the effectiveness and efficiency ofthe system.