A galvanometric laser for cutting and/or etching textile embellishments such as transfers or applique's and a method of operation thereof that is capable of visually capturing an incoming graphic image and referencing a cut pattern to the captured image and dynamically adjusting the cut pattern during cutting, etching and/or application of energy from the laser to thereby compensate for distortions in the fabric. The device includes a conveyor with an imaging station at which the graphic product is indexed under a high-resolution static camera with color recognition capability for the purposes of image capture. A high intensity bottoms-up light source resident at the imaging station provides ample illumination regardless of whether the design elements are face up toward the camera or face down toward the light source, or a combination of both. The system includes a computer at which the captured product image is analyzed, and the analytics are used to adjust the input cut file specifying the location and power settings for laser application. The product is then advanced in a controlled manner by means of the conveyor into a galvanometric cutting station where laser energy is applied. After completion the product is advanced out of the galvanometric cutting station for packaging.