A 3D terrain reconstruction method using compound techniques is proposed. Normal matching results only supply DSM (Digital Surface Model). This means matching results may be on the top of man-made objects such as houses or trees. This kind of matching results could not supply an accurate DEM (Digital Elevation Model). The proposed method is a more efficient method for determining elevations from overlapping digital aerial images and satellite images. It combines image analysis and image matching methods and supplies a more accurate DEM.