A gyroscope and visual fusion solution for digital video stabilization (DVS) is presented. The solution classifies DVS-related motions into three types: the object motion (OM) in the world space, the camera motion in the camera space (CS), and the pixel motion in the image space (IS). The camera rotation is estimated by gyroscope and smoothed in the CS, while the camera translation is compounded with the OM and smoothed together in the IS. The main contributions of this paper lie in two aspects: (1) propose an inertial and visual fusion method to stabilize both rotational and translational jitters and (2) the fusion method is simple and fast in computation and can be suitable for smart terminals. Experimental results show that the proposed solution performs well in video stabilization.