Aiming at the serious threat of precision guided weapons to our military targets and the deficiency of the traditional camouflage equipment, an idea of changing the optical image signatures of targets by changing their surface reflection and emission characteristics hence to avoid the detection and tracking by the precision guided weapons is proposed. The concept of optical dynamic camouflage is described, the visible and infrared dynamic techniques are presented and the conclusion that the optical dynamic camouflage is becoming an important aspect of the stealth and camouflage is given.