After a short introduction including a historical review of our experience up to now, the report describes some of the important possible applications of modern image processing in future helicopters. The tasks of the image processing system as applied to actual operational functions will be described for a wide range of applications, such as scene analysis on the field of battle, missile guidance for guided missiles such as HOT, multiple target tracking, alignment of ATGW 3 missiles with the gunner's sight and distance-specific algorithms for seeker heads and terminal-phase guidance. In the second part of the report, suitable and tested methods of realizing these applications will be described, with particular attention given to realization of a complex 20ms realtime algorithm enabling a target in an involved scenario, with several obstacles, to be successfully tracked. Lastly, we look at the algorithms required for seeker heads and the extreme miniaturization that their realization inevitably entails. The application examples described in this paper refer to work carried out by AEG or MBB, or in some cases to joint enterprises undertaken by both companies.