Occlusion is one of the challenging problems in stereo. In this paper, we solve the problem in a segment-based style. Both images are segmented, and we propose a novel patchbased stereo algorithm that cuts the segments of one image using the segments of the other, and handles occlusion areas in a proper way. A symmetric graph-cuts optimization framework is used to find correspondence and occlusions simultaneously. The experimental results show superior performance of the proposed algorithm, especially on occlusions, untextured areas and discontinuities.