An application of dynamic programming to the optimization of satellite intercept and rendezvous problems. The two-body equations of motion for the target vehicle and interceptor are linearized, and a quadratic performance index is defined. Idealized performance of the terminal guidance process consists of reducing to zero both the relative position between the target and interceptor for the intercept case and the relative position and velocity for the rendezvous case. The performance of the system is optimized by choosing the control vector in such a way that the performance index is minimized; the expressions for the control vector are given. Perfect measurements of relative position and velocity are assumed. 16 pp.