A motion correction and compensation method for image sensors. A new flag and an old flag are used to detect the directions of movement and correct movements. A value of the new flag is set according to a direction of the present movement. A value of the old flag is set according to a previous movement. The values of the new flag and the old flag are compared to determine if the movement of a time is in the same direction as the movement of a previous time. The value of the old flag has a value for correcting the movement if movements at different time are in opposite direction. If movement is determined incorrect according to a reference image and a new image, previous movement is output and occurrences of incorrect movements are counted. If the occurrences do not exceed a maximum number, the next movement is predicted. If the next movement exceeds a maximum movement or the occurrences exceed a maximum number, the reference image is updated. If the next movement does not exceed a maximum movement, the reference image is holded.