The design of smart video surveillance systems is an active research field among the computer vision community because of their ability to perform automatic scene analysis by selecting and tracking the objects of interest. In this paper, we present the design and implementation of an FPGA-based standalone working prototype system for real-time tracking of an object of interest in live video streams for such systems. In addition to real-time tracking of the object of interest, the implemented system is also capable of providing purposive automatic camera movement (pan-tilt) in the direction determined by movement of the tracked object. The complete system, including camera interface, DDR2 external memory interface controller, designed object tracking VLSI architecture, camera movement controller and display interface, has been implemented on the Xilinx ML510 (Virtex-5 FX130T) FPGA Board. Our proposed, designed and implemented system robustly tracks the target object present in the scene in real time for standard PAL (720 × 576) resolution color video and automatically controls camera movement in the direction determined by the movement of the tracked object.