An optical system with optical image stabilization of the present invention compensates the movement of the optical system occurring during imaging process using a Micro-Electro Mechanical System (MEMS) unit having an MEMS mirror to stabilize an image of an object formed on an image plane. A micro-actuator with the in-plane translation makes the MEMS mirror have a required rotation to change optical paths of light from the object to the image plane for optical image stabilization. The optical system with optical image stabilization or the present invention provides fast speed, light weight, simple operation, and high image quality image stabilization for the optical system.