Digital binoculars is the combination of digital cameras and telescopes, it not only can observe the details of the long distance target but also can record it. The field of view between photographic field lens and telescope system is the same. This paper designs the telescope system on basis of the theory of dynamic optics. The system works in visual light waveband. The field of view is , the magnification is eight and the entrance pupil diameter is 32mm. prism is selected as the image rotation prism and image stabilization prism. In order to obtain clear images in a dynamic circumstance, we utilize the rotation theorem of prism to analyze the relation between jitter compensated lens and luminous beam angle. We can calculate the position of compensated lens. So it can achieve the jitter compensation. Finally, this paper takes an application as an example. If the jittered angle is , the displacement of pixel is calculated to 1.061mm. The displacement of the compensated lens is 2.84mm. At the same time, the light still arrives to the eyepiece by the original track. So image stabilization is relative to the reference coordinate, as a result we can get the stable image.