This paper firstly proposes an algorithm of moving object detection and extraction, and places the extracted object in the mixed reality. The movement tendency of the moving objects is tracked by the value of mean shifting algorithm, so the computation of the frame difference can be reduced. The appropriate threshold is selected and frame difference is improved by using the histogram. The “holes” and “double shadows” phenomena are reduced and the foreground image is enhanced. The experiment shows that this method can not only improve the detection rate, but also have strong robustness.