When a person tracks a small moving object, the visual images in the background of the visual scene move across his/her retina. It, however, is possible to estimate the actual motion of the images despite the eye-movement-induced motion. To understand the neural mechanism that reconstructs a stable visual world independent of eye movements, we explored areas MT (middle temporal) and MST (medial superior temporal) in the monkey cortex, both of which are known to be essential for visual motion analysis. We recorded the responses of neurons to a moving textured image that appeared briefly on the screen while the monkeys were performing smooth pursuit or stationary fixation tasks. Although neurons in both areas exhibited significant responses to the motion of the textured image with directional selectivity, the responses of MST neurons were mostly correlated with the motion of the image on the screen independent of pursuit eye movement, whereas the responses of MT neurons were mostly correlated with the motion of the image on the retina. Thus these MST neurons were more likely than MT neurons to distinguish between external and self-induced motion. The results are consistent with the idea that MST neurons code for visual motion in the external world while compensating for the counter-rotation of retinal images due to pursuit eye movements.