A method of accurately projecting a laser image pattern on a work surface and continuously compensating for relative dynamic movement between the laser and the work surface, including establishing a position of the camera in three dimensions relative to the work surface by locating the targets in the camera image, establishing a position of the laser relative to the work surface utilizing the fixed position of the laser relative to the camera, and using a computer to continuously adjust the rotation of the laser projector mirrors in response to dynamic movement of the laser projector relative to the work surface as determined by the camera. In one embodiment, the computer continuously tracks at least two prior locations of the laser projector relative to the work surface and predicts the next location of the laser, compensating for movement of the laser relative to the work surface.