This is the final report of a program to demonstrate the feasibility of using optical area correlation tracking for terminal guidance of air-to-surface missiles. The results are also used to determine the performance characteristics of a fourth generation model, optical area correlator. The test program has demonstrated the feasibility of using area correlation guidance techniques for area type air-to-surface munitions. The Martin Marietta tracker demonstrated a CEP of 151 feet, extrapolated to missile impact, from a launch range of 8 nautical miles. An operational tracker based on this design, when used as a terminal guidance system for a tactical missile, could be operated in either of two modes 1 The pilot selects the target, centers the gunsight, engages the memory, and fires the missile. 2 This mode is the same as the first except the target signature is placed in the systems memory before takeoff using reconnaissance information.