We propose a robust tracking algorithm based on local sparse coding with discriminative dictionary learning and new keypoint matching schema. This algorithm consists of two parts: the local sparse coding with online updated discriminative dictionary for tracking (SOD part), and the keypoint matching refinement for enhancing the tracking performance (KP part). In the SOD part, the local image patches of the target object and background are represented by their sparse codes using an over-complete discriminative dictionary. Such discriminative dictionary, which encodes the information of both the foreground and the background, may provide more discriminative power. Furthermore, in order to adapt the dictionary to the variation of the foreground and background during the tracking, an online learning method is employed to update the dictionary. The KP part utilizes refined keypoint matching schema to improve the performance of the SOD. With the help of sparse representation and online updated discriminative dictionary, the KP part are more robust than the traditional method to reject the incorrect matches and eliminate the outliers. The proposed method is embedded into a Bayesian inference framework for visual tracking. Experimental results on several challenging video sequences demonstrate the effectiveness and robustness of our approach.