This paper introduces an underwater docking procedure for the test-bed autonomous underwater vehicle (AUV) platform called ISiMI using one charge-coupled device (CCD) camera. The AUV is optically guided by lights mounted around the entrance of a docking station and a vision system consisting of a CCD camera and a frame grabber in the AUV. This paper presents an image processing procedure to identify the dock by discriminating between light images, and proposes a final approach algorithm based on the vision guidance. A signal processing technique to remove noise on the defused grabbed light images is introduced, and a two-stage final approach for stable docking at the terminal instant is suggested. A vision-guidance controller was designed with conventional PID controllers for the vertical plane and the horizontal plane. Experiments were conducted to demonstrate the effectiveness of the vision-guided docking system of the AUV.