This paper makes new contributions in motion detection, object segmentation and trajectory estimation to create a successful object tracking system. A new efficient motion detection algorithm referred to as the flux tensor is used to detect moving objects in infrared video without requiring background modeling or contour extraction. The flux tensor-based motion detector when applied to infrared video is more accurate than thresholding "hot-spots", and is insensitive to shadows as well as illumination changes in the visible channel. In real world monitoring tasks fusing scene information from multiple sensors and sources is a useful core mechanism to deal with complex scenes, lighting conditions and environmental variables. The object segmentation algorithm uses level set-based geodesic active contour evolution that incorporates the fusion of visible color and infrared edge informations in a novel manner. Touching or overlapping objects are further refined during the segmentation process using an appropriate shape-based model. Multiple object tracking using correspondence graphs is extended to handle groups of objects and occlusion events by Kalman filter-based cluster trajectory analysis and watershed segmentation. The proposed object tracking algorithm was successfully tested on several difficult outdoor multispectral videos from stationary sensors and is not confounded by shadows or illumination variations.