The invention provides a multifunctional panoramic head, including a horizontal rotating device, a vertical rotating device, a transverse arm and a vertical arm, the vertical rotating device includes a rotary disc, a vertical indexing disc and a locating component, the rotary disc and the vertical indexing disc are set on the upper part of the vertical arm, the locating component is set within the vertical arm, and the locating component includes a locating component body, a plurality of locating pins which are assembled together with the locating component body and a locating switch handle which can control the locating pins to stretch out and draw back. The invention also provides a panoramic image capture system. The invention can achieve precise angular positioning of a camera and lens, enhancing the stability of the head, reducing image blurring and hence improving success rate of panoramic image creation and stitching efficiency.