This paper presents a novel dynamic camera parameter control method for position and posture estimation of highly miniaturized AR markers (micro AR markers) using a low cost general camera. The proposed method performs iterative calculation of the marker’s position and posture to converge them to specified accuracy with dynamically updating the camera’s zoom, focus and other parameter values based on the detected marker’s depth distances. For a 10 mm square micro AR marker, the proposed system demonstrated recognition accuracy of better than ±1.0% for depth distance and 2.5∘ for posture angle with a maximum recognition range of 1.0 m. In addition, the iterative calculation time was at most 0.7 seconds in an initial detection of the marker. These experimental results suggest that the proposed method and system can be applied to a robotic precise handling of small objects with low cost.