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For Canon cameras 'IS' refers to "Image Stabilisation". Nikon have the same technology but they call it "VR" - "Vibration Reduction" and other manufacturers have different names for it but they all amount to the same thing. With some SLR camera manufactures the image stabilisation is built into the body of the camera but generally the IS is built into the lens. It reduces the effect of "camera shake" which can make your images blurry at lower shutter speeds.

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Q: What does 'IS' mean for digital camera?
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