System and method for detection and tracking of moving objects

A method (200) implemented using a processor based device (110) is disclosed. The method includes receiving a video stream comprising a plurality of image frames (302,304) having at least one moving object (120,122), determining (206) a difference between at least two image frames among the plurality of image frames and generating a difference image (306) comprising a plurality of image blobs (310) corresponding to the at least one moving object. The method further includes generating a plurality of bounding boxes (314), each bounding box surrounding at least one corresponding image blob among the plurality of image blobs, and determining a subset of bounding boxes (352,354) among the plurality of bounding boxes, associated with the corresponding moving object, using a fuzzy technique based on a perceptual characterization of the subset of bounding boxes. The method also includes merging (208) the subset of bounding boxes to generate a merged bounding box (356) enclosing the subset of bounding boxes to detect the moving object.