The invention relates to an automatic cloth inspecting machine, in particular to an automatic cloth inspecting machine with a defect automatic inspection and recognition system, and especially an automatic cloth inspecting machine with a method for correcting image distortion caused by shaking of a cloth cover. The automatic cloth inspecting machine can correct image distortion caused by shaking of a cloth cover, by tiling fabric corresponding to an image, grids are divided at equal intervals along the warp direction, so as to serve as a sampling point network for image correcting, and linear interpolation is performed according to the space relation between a corrected sampling point and an original sampling point on a tiling fabric plane, so that the gray value of each pixel on the corrected image is obtained. Load required for the method is low, the memory consumption is low, and the automatic cloth inspecting machine can be applied to real-time processing, so as to be convenient for the subsequent defect recognition and processing of the automatic cloth inspecting machine.