In the widely used field of panoramic image stitching, the key technologies mainly cover two parts, i.e., image registration and image fusion. In order to achieve low-cost and real-time processing, researchers often design dedicated circuits for various image stitching algorithms. Many studies focus on image registration algorithms and ignore image fusion algorithms, let alone dedicated circuit design. In addition, to reduce the ghosting effect and deformation caused by seams in stitching, finding the best seam line based on the overlapping area of the stitching image is crucial, which directly affects the quality of image stitching and fusion. In order to solve the above problems and achieve the efficient fusion of registered images, an image stitching and fusion algorithm circuit based on a dynamic programming algorithm to search for seam lines was proposed. Comprehensive experimental results and a theoretical analysis based on Cyclone IV FPGA devices show that, with a clock frequency of 100 MHz, the proposed circuit takes about 7.04 ms to carry out the fusion processing of two 486 × 643 images, and the corresponding frame rate is approximately 142 FPS, achieving a perfect real-time stitching effect and meeting the demand for real-time image processing. After a theoretical derivation and comparison with other similar works, its processing speed is better than four state-of-the-art implementations.