Abstract: There are two main aspects in 3D city reconstruction:3D geometric information collection and surface texture restoration.The new methods for reconstructing the 3D city with both the oblique and perpendicular photographic images are presented.The mathematical model for restoring IKONOS stereo images by rational polynomial coefficients (RPC)is analyzed and performed in VirtuoZo digital photogrammetric workstation.Using its rapid image matching technique, this paper realizes the generation of digital elevation model (DEM)and orthoimage and the ground feature collection either manually or semi-automatically.