There is provided a method of processing digital images associated with a parallax shift for creation of a digital panoramic image, comprising: computing a respective depth map storing values denoting distances to regions of a scene, for each camera located at a respective first position, capturing a respective image by each camera, virtually rotating each camera to second positions at respective angles computed according to a certain region of the image relative to the center point of the camera, mapping between each respective region of the image associated with each respective second position and a corresponding region of the respective depth map computed for the respective camera, and adjusting intensity values of pixels of the regions of each image according to corresponding distance values of the mapped regions of the depth map of the respective camera, to create a plurality of adjusted images for creation of the panoramic image.