This paper describes and benchmarks a new implementation of image-based deformation measurement for geotechnical applications. The updated approach combines a range of advances in image analysis algorithms and techniques best suited to geotechnical applications. Performance benchmarking of the new approach has used a series of artificial images subjected to prescribed spatially varying displacement fields. An improvement by at least a factor of 10 in measurement precision is achieved relative to the most commonly used particle image velocimetry (PIV) approach for all deformation modes, including rigid-body displacements, rotations, and strains (compressive and shear). Lastly, an example analysis of a centrifuge model test is used to demonstrate the capabilities of the new approach. The strain field generated by penetration of a flat footing and an entrapped sand plug into an underlying clay layer is computed and compared for both the current and updated algorithms. This analysis demonstrates that the enhanced measurement precision improves the clarity of the interpretation.