This paper presents the concept of a smart satellite pushbroom imaging system with internal compensation of attitude instability effects. The compensation is performed within the optical path by an active opto-mechatronic stabilization of the focal plane image motion in a closed loop system with visual feedback. Residual distortions are corrected by image deblurring through deconvolution. Both corrective actions are derived from a real-time image motion measurement which is based on an auxiliary matrix image sensor and an onboard optical correlator. The paper describes the principles of operation, the main system elements and gives detailed performance figures derived from a simulation performance model, which contains all relevant components of the smart imaging system