The method of correcting position error based on mutual information entropy is proposed in this paper.The realistic product is always different from standard template since the FPC manufacturing material is easily affected by thermal expansion and contraction.Correcting matching error is crucial during manufacturing process.The mutual information entropy（MIE）is applied to evaluating the correlation between the images.The MIE increases and reach maximum when the referent and inspecting FPC solders are aligned with the same place.Moreover,The MIE in some image′s region which contains more grey information can react to position error strongly.According to the above principle,the MIE and key regional feature is applied to searching best optimal correction parameters to improve positioning accuracy.The method is verified by a simulation and applied to the inspecting system.It demonstrates that the method can correct the position error more effectively compared with Hough transformation and affine transformation method.The matching accuracy can reach 22.4 micron under the condition that manufacturing error is 75 micron.