In the past few years, the research on Miniature Aerial Vehicle (MAV) has gain speed. Initial research conducted to attain precise hovering, but the focus now was shifted to formation flight. Formation flight is done by numerous means and techniques. Numerous literatures have cited that the main problem in formation flight is tracking itself. Tracking system used in the literature includes but not limited to GPS/INS, on-land stereo vision, on-land camera tracking and also on-board camera tracking via ground help processing. Tracking system using GPS/INS has high potential in a fixed wing MAV such as an airplane but it is not suitable for formation flight of small MAV in a small space due to its lack of accuracy. High specification GPS with high accuracy is currently very expensive. On-land vision has also produces great result but the area of operation is limited to the area in which the vision system can see. On-board camera with ground help processing has also produce great result and are widely used in formation flight control. In this paper we propose a tracking system for formation flight using an on-board camera with embedded control system. In this system image processing for tracking is done on-board. The system itself was built using of-the-shelf parts and low cost but gives good result in tracking. The result of the tests done to evaluate the effectiveness of the system is very promising.