In this paper, we mainly present a novel and real-time capsule endoscopy (CE) video visualization concept based on panoramic imaging. Typical CE videos run about 8 hours and are manually reviewed by physicians to locate diseases such as bleedings and polyps. To date, there is no commercially available tool capable of providing stabilized and processed CE video that is easy to analyze in real time. The burden on physicians' disease finding efforts is thus big. In fact, since the CE camera sensor has a limited forward looking view and low image frame rate (typical 2 frames per second), and captures very close range imaging on the GI tract surface, it is no surprise that traditional visualization method based on tracking and registration often fails to work. This paper presents a novel concept for real-time CE video stabilization and display. Instead of directly working on traditional forward looking FOV (field of view) images, we work on panoramic images to bypass many problems facing traditional imaging modalities. Methods on panoramic image generation based on optical lens principle leading to real-time data visualization will be presented. In addition, non-rigid panoramic image registration methods will be discussed.