A New Stereo Matching Method Based Phase Dynamic Programming (PDP) is presented in this paper. This method, based on gray code value and phase value, implements stereo matching through finding an optimal path on a 2D plane composed of cross phase absolute difference in the same gray region. Before matching, mask-image is adopted to reduce matching data point. During matching, the matching strategy is optimized by adopting sequence consistency technique as well as defining the path orientation. After matching, the error data point is eliminated by matching consistency and median filtering based disparity. Finally, experimental results show this algorithm can get a better performance. Matching process of PDP is simple but effective than others. It not only can get continuous and dense parallax but also eliminate effects of noise and the reconstructive object has high reliability, better authenticity and high precision.