System and method for presenting magnified images locked onto object of interest in operator environment. A camera disposed on head of operator captures images of scene, where camera moves in conjunction with head movements. A head tracker detects the operator LOS by detecting at least head orientation. A processor obtains designated coordinates of object of interest in scene, and determines relative angle between detected operator LOS and object. The processor determines coordinates of object in acquired images, and applies image processing for fine stabilization of images based on previous images so as to compensate for operator head movements. The processor rescales an image region surrounding object of interest, in accordance with at least one display parameter, to produce respective magnified image frames of object. A head-mounted display displays the magnified images to operator such that object of interest appears in a defined position on display regardless of operator head movements.