Systems and methods for performing digital image stabilization implemented in a digital camera. The digital camera includes a gyroscope to measure motion of the digital camera and processes the signals from the gyroscope to track the total displacement of an image sensor over a series of frames of video. The algorithm implemented by the digital camera includes a processing block for correcting a DC bias in the signals from the gyroscope, a filter for attenuating the signals during periods of high acceleration, a processing block for detecting the start of a panning motion, and a processing block for quickly retracing the digital image stabilization correction back to the center of the image sensor during a panning motion.