The PEGASUS system, developed by Autometric, Inc., is a cost-effective, versatile softcopy workstation which can be used to extract terrain and feature data from digital imagery. This workstation can work with monoscopic as well as stereoscopic imagery, and a large variety of types of imagery are supported. Automatic digital terrain model (DTM) extraction is augmented by a semi-automatic edit capability based on a floating cursor tied to a real-time photogrammetric loop. The initial feature extraction capabilities include a semi-automated procedure to collect the point, line, and polygon data which is the foundation of map generation, map revision, and change detection. Target applications for the PEGASUS workstation include perspective scene generation, mission planning support, map data edit and revision, precise mensuration, line-of-sight applications, and industrial photo-grammetry. Key advantages of the PEGASUS workstation is that the hardware is commercial-off-the-shelf (COTS) and an extensive amount of COTS software is included with the system. Photogrammetric and geo-handling software developed by Autometric is combined with the image processing and rendering tools of the PIXAR II and the graphics and window capabilities of the Silicon Graphics 4D to produce a complete system. This paper discusses the functionality and performance of the PEGASUS workstation as well as its hardware architecture. Functions treated include the real-time photogrammetric loop; image warping and DTM collection; feature data collection, editing, and display.