A method and apparatus are described which produce spatially compounded panoramic ultrasonic images by electronically steering beams in a plurality of different look directions as a transducer is moved in relation to a panoramic image field. The received echo information is compounded, then aligned and combined with previously acquired echo information to form a spatially compounded panoramic image. Alternatively, the received echo information may be aligned with previously acquired echo information, then combined to produce spatial compounding and a panoramic image in one process.