Abstract: A new approach for resolving occlusion problem in augmented reality is presented in this paper. The heart of this algorithm is to track at least four fiducial points from frame to frame that construct the affine frame, thus the occlusion contours between virtual and real objects can be reconstructed and reprojected. Further, each contour is labeled as being "behind" or "in front of" in the first two frames, depending on whether it is in front of or behind the virtual object, so the occlusion is resolved. Two typical examples show that the algorithm is feasible for resolving occlusion.