In a Digital Particle Image Velocimetry (DPIV) system, the correlation of digital images is normally used to acquire the displacement information of particles and give estimates of the flow field. The accuracy and robustness of the correlation algorithm directly affect the validity of the analysis result. In this article, an improved algorithm for the correlation analysis was proposed which could be used to optimize the selection/determination of the correlation window, analysis area and search path. This algorithm not only reduces largely the amount of calculation, but also improves effectively the accuracy and reliability of the correlation analysis. The algorithm was demonstrated to be accurate and efficient in the measurement of the velocity field in a flocculation pool.