The compressed-domain object tracking approaches utilize the information that is directly extracted from the compressed bitstream, such as motion vector and block coding modes. Because the existing compressed-domain tracking methods have poor tracking performance for small moving targets, this study proposes a compressed-domain tracking algorithm for small moving targets. By analyzing the shortages of the existing algorithms, the performance of small target tracking is improved from the acquisition of initial frame mask, the setting of outlier boundary and the edge control of the predicating small target, and some system parameters of the block-coding system are optimized through data-driven methodology. Experiential results on three small-target video sequences show that compared with other object tracking methods, the proposed method can effectively improve the tracking performance for small moving targets in terms of accuracy and F-measure.