A mobile platform mounted with omnidirectional vision sensor (ODVS) can be used to monitor large areas and detect interesting events such as independently moving persons and vehicles. To avoid false alarms due to extraneous features, the image motion induced by the moving platform should be compensated. This paper describes a formulation and application of parametric egomotion compensation for an ODVS. Omni images give 360. view of surroundings but undergo considerable image distortion. To account for these distortions, the parametric planar motion model is integrated with the transformations into omni image space. Prior knowledge of approximate camera calibration and camera speed is integrated with the estimation process using a Bayesian approach. Iterative, coarse-to-fine, gradient-based estimation is used to correct the motion parameters for vibrations and other inaccuracies in prior knowledge. Experiments with a camera mounted on various types of mobile platforms demonstrate successful detection of moving persons and vehicles.