The Midcourse Space Experiment satellite, launched 24 April 1996, carries the Space-Based Visible (SBV) sensor package designed for conducting space surveillance from a space platform. The SBV sensor consists of a visible imaging charged couple device sensor that generates sets of images of resident space objects against a star background. These images are either directly sent to a tape recorder for later transmission to the ground for processing, or more commonly, they are processed onboard the sensor package and only the data associated with the stars and potential resident space objects are downlinked for processing. The SBV data reduction process of generating metric observations from SBV data is described. This process consists of first determining an accurate pointing of the SBV sensor using the star background. The refined pointing is then used to generate right ascension and declination observations for the resident space object. Finally, the resident space objects are identified by correlating the observations with a complete resident space object catalog. The algorithms used are discussed, and a summary of data processed is presented.