Manual monitoring and seam tracking through watching weld pool images in real-time, by naked eyes or by industrial TV, are experience-depended, subjective, labor intensive, and sometimes biased. So it is necessary to realize the automation of computer-aided seam tracking. A PAW (plasma arc welding) seam tracking system was developed, which senses the molten pool and the seam in one frame by a vision sensor, and then detects the seam deviation to adjust the work piece motion adaptively to the seam position sensed by vision sensor. A novel molten pool area image-processing algorithm based on machine vision was proposed. The algorithm processes each image at the speed of 20 frames/second in real-time to extract three feature variables to get the seam deviation. It is proved experimentally that the algorithm is very fast and effective. Issues related to the algorithm are also discussed.