Based on image processing technology, a laser identification method of displacement monitoring with high-efficiency and low-cost has been proposed. Using laser spot video identification method in landslide monitoring, displacement, the main specialty of the sliding slope may be obtained and the monitoring efficiency may be improved. Fix the laser on the object and project the laser spot onto a fixed screen. When the object movement occurs, the camera fixed in front of the screen will shoot the entire movement of the laser spot on the screen. In this way, the displacement of the object will be obtained by analyzing the movement state of the spot. Experiments have been conducted, which contain static displacement experiments including cyclic loading test experiments and random loading experiments, as well as dynamic displacement. Results are proved well by comparison with the data that a laser displacement sensor collected. A great quantity of tests demonstrated that laser identification method of displacement monitoring with high-accuracy and low-cost is now what we have explored.