This thesis investigated the method of Bundle Adjustment with special focus on constrained systems, such as panoramic cameras. SBA algorithm from Lourakis and Argyros was implemented in Matlab and its functionality was validated. A new algorithm was proposed and implemented based the original one, incorporating the constraints suited for PanCam-like cameras. This algorithm was evaluated on both synthetic and real datasets. The performance was thoroughly analyzed and compared to the original method in terms of accuracy of the reconstruction. For synthetic datasets, significant improvements have been observed and expressed quantitatively. Particular improvements in terms of visual appearance have been observed on real datasets. Results were elaborated and possibilities for further improvement have been proposed.