This study proposed the vision-based system which remotely measures dynamic displacement of bridges in real-time using digital image processing techniques. This system has a number of innovative features including a high resolution in dynamic measurement, remote sensing, cost-effectiveness, real-time measurement and visualization, ease of installation and operation and no electro-magnetic interference. The digital video camera combined with a telescopic device takes a motion picture of the target installed on a measurement location. Meanwhile, the displacement of the target is calculated using an image processing technique, which requires a target recognition algorithm, projection of the captured image, and calculation of the actual displacement using target geometry and number of pixels moved. For the purpose of verification, a laboratory test using shaking table test and field application on a bridge with open-box girders were carried out. The test results gave sufficient dynamic resolution in frequency as well as the amplitude.