An image stabilization system includes a fixed unit having a first receiving cavity therein, a movable unit received in the first receiving cavity, a pivot member located between the fixed unit and the movable unit, a magnetic motion sensor, and a magnetic driving module. The pivot member is received in and between the fixed unit and the movable unit. The magnetic motion sensor is disposed on the fixed unit for detecting a movement of the image stabilization system. The magnetic driving module is configured for rotating the movable unit around the pivot member to compensate for movement of the image stabilization system based on the motion detection result of the motion sensor.