Frozen microspheres of hydrogen (pellets) are used as targets in the hadron physics experiment WASA (Forschungszentrum Julich, Germany) 1 and will also be used in the future PANDA experiment at FAIR (GSI, Darmstadt, Germany) 2. The interaction region is defined by the overlap of the pellet stream and the accelerator beam and has a size of a few millimeters. One would like to know the interaction point more precisely, to have better possibility to reconstruct particle tracks and events. One would also like to suppress background events that do not originate in a pellet, but e.g. may occur in residual gas in the beam pipe. A solution is provided by the presented pellet tracking system, for which a prototype 3 has been developed in Uppsala. The goal is to track individual pellets in order to know their position at the time of an interaction. The design of such a system, simulation techniques and results are presented.