An apparatus and technique for compensating the display of an image obtained from a video camera system associated with an endoscope as it is moved through various orientations are described. The received optical image is converted to an electrical signal with an image sensor that can be a CCD or a CMOS detector. The endoscope video camera system has an inertial sensor to sense rotations of the received image about the optical axis of the endoscope and the sensor's output signals are used to rotate either the image or the image sensor. In case of rotation of the image sensor the rotation sensor can be a gyroscope or a pair of accelerometers. In case of a rotation of the image obtained with the image sensor the inertial sensor, which can be an accelerometer or a gyroscope, the image is rotated within a microprocessor for subsequent viewing on a video display.