In this study, optical design for small satellite camera equipped with online optical compensation movements has been conducted. Satellite camera equipped with compensation movements at M2 mirror and focal plane can guarantee the MTF performance through the focal plane image stabilization and the on-orbit optical alignment. The designed optical system is schmidt-cassegrain type that has M1 mirror of a diameter 200mm, GSD 3.8m at an altitude of 700km, and 50 % MTF performance. The performance of the designed optical system has been analyzed through the method of ray aberration curve, spot diagram, and MTF. It has been found by the optical performance analysis that the designed optical system satisfies the optical requirements of satellite camera equipped with online optical compensation movements.