The present invention provides a fast high-precision geometric template matching method enabling rotation and scaling functions. According to the method, based on image edge information, with the sub-pixel edge points of a template image adopted as feature points, the tangent directions of the gradient directions of a target image adopted as feature lines, and based on the local extremum points of a similarity value, the similarity and the candidate positions of the template image and the target image are calculated from fine to rough through adopting a Pyramid algorithm and according to a similarity function; and pixel-level positioning accuracy is obtained at the bottommost layer of a Pyramid, the least squares method is adopted to carry out fin adjustment, so that sub-pixel positioning accuracy, higher-precision angle and size scaling accuracy can be achieved. The method can realize fast, stable and high-precision positioning and identification of target images which are moved, rotated, scaled and is partially shielded, and where the brightness of illumination changes, illumination is uneven, and cluttered background exists. The method can be applied to situations which require machine vision to carry out target positioning and identification.