The optical area correlation system developed by The Boeing Company for missile terminal guidance is called BOSSCO. This development was partially funded under the Air Force Armament Laboratories (AFATL), Eglin AFB, Florida, which sponsored the Pavestorm III program as a highly accurate clear-weather weapon for stationary targets. This paper describes the system design, hardware design and test program conducted during the period of the contract (1972-1974). Also described is the redesign and retest effort conducted under independent research funding to correct design errors and reach the present performance level. Alternate applications including navigation update, map matching and image correlation or alignment were later explored both independently and under contract with the Engineering Topographical Laboratories (ETL), Fort Belvoir, Virginia. Further flight testing and laboratory demonstrations took place over Fort Belvoir and at the Army Missile Command (MICOM), Huntsville, Alabama. This system represents a unique capability which, when mechanized in large scale integrated circuit technology, could significantly increase our national defense capability by providing a near-term fire-and-forget guidance option.