The invention discloses an image registration method based on a synthetic aperture radar (SAR) image and digital elevation model (DEM) data, wherein the problems that the positioning precision to ground target points in SAR image is not high and positioning is difficult to realize in actual projects in the prior art are mainly solved. The method comprises the following steps of: solving a longitude L, a latitude B and an elevation value h' of a ground target point in a spherical coordinate system by using a steepest descent method according to the Range-Doppler (RD) principle and the earth model equation, and transforming the values into a geodetic coordinate system; looking up the elevation value h' corresponding to B and L in a DEM database, and comparing the absolute value of h'- h' with a set threshold value epsilon, if the absolute value of h'- h' is greater than epsilon, enabling h to be equal to h' and returning to resolve the equation system again, and if the absolute value ofh'- h' is identical to or less than epsilon, stopping iteration, and taking h' as the elevation value of the ground target point, and the corresponding latitude B and longitude L as the latitude and longitude of the ground target point; linearly correcting the longitude and latitude to eliminate system errors, so that a final ground target point positioning result is obtained. The image registration method disclosed by the invention has the advantages of small operand and high positioning precision, and can be used for positioning ground target points in SAR images in actual projects.