The analysis of terrain modeling methods is an important work on the development of digital photogrammetry,. The objective of this investigation is to compare and integrate the airborne lidar and aerial images for DEM generation. The major works include: (1) data collection, (2) the comparison of image matching methods, (3) the comparison of DEM generated from airborne lidar and aerial images, (4) the suggestion of the standard operation procedure (SOP) and quality control (QC) for lidar data processing, (5) the integration of airborne lidar and aerial images, (6) comparison of building modeling using airborne lidar and aerial images, and (7) the analysis of full wave form lidar data. First, This study collects the test data and related reports. The test data contain lidar and images in the same location. Two commercial softwares, Inpho Match-T and PCI OrthoEnginer, are selected for the comparison of image matching methods. After the comparison of DEM from lidar and images, we propose the procedure of standard operation procedure (SOP) and quality control (QC) for lidar data processing. We also summarize the results of EuroSDR building extraction in the analysis of building modeling. Finally, the Rigel Q560 full waveform lidar is selected to analyze the performance of terrain modeling.