Defining pixel correspondences in stereo-pairs is a fundamental process in automated image-based 3D reconstruction. In this project we focus on dense matching, based on local optimization. The approach represents a fusion of state-of-the-art algorithms and novel considerations, which mainly involve improvements in the cost computation and aggregation processes. The matching cost which has been implemented combines the absolute difference of image colour values with a census transformation directly on images intensity gradients. Besides, a new cost volume is computed by aggregating over cross-window support regions with a linearly defined threshold on cross-window expansion. Aggregated costs are, then, refined using a scan-line optimization technique, and the disparity map is estimated using a ‘winner-takes-all’ selection. Occlusions and mismatches are also handled using existing schemes. The proposed algorithm is tested on a standard stereo-matching data-set with very promising results (see ranking of our current implementation LAMC_SDM at the Middlebury stereo-evaluation platform).