This paper presents a fully automatic method to reconstruct the relative orientation of a pair of stereo images by matching area features. First, by using the concept of coarse-tofine process, the stereo images are stored in a form of image pyramid. In the coarsest level, area features of homogeneous regions are extracted by using region-growing method. Then, their boundaries are described with Fourier descriptors. Applying the least-squares approach to matching Fourier descriptors, the recognition information consists of shape similarity and relative orientation between each possible matching pairs of area features is obtained. Based on the recognition information, conjugate area features can be matched by using Hopfield-Tank neural networks. When conjugate area features are determined, the approximate orientation between images can be easily solved. Knowing the approximate orientation, area-based matching, through a coarse-to-fine matching process, can be applied to obtain accurate tie points, and relative orientation can be solved. A pair of real aerial images were tested. The results show a successful application of the method.