An optical text scanning device compatible with a small handheld computer such as a personal digital assistant (PDA). The scanning device allows for a clear view of the text that is scanned simultaneous to the scanning process so that the operator can continuously align the device to the text. The scanned images of the text are converted in real-time to standard byte or word characters for subsequent display on the computer's viewing screen. The operator can quickly verify the accuracy of the conversion by comparing the displayed character with the actual character of text on the surface that is being scanned. Scanned text characters are stored in standard digital text files for ease of manipulation.