The upcoming PANDA (anti-Proton ANnihilation at DArmstadt) experiment at FAIR (Facility for Anti-proton and Ion Research) offers unique possibilities for performing hyperon physics such as extraction of spin observables. Due to their relatively long-lived nature, the displaced decay vertices of hyperons impose a particular challenge on the track reconstruction and event building. The foreseen high luminosity and high beam momenta at PANDA requires new advanced tracking algorithms for successfully identifying the hyperon events. The purely software based event selection of PANDA puts high demands on the online reconstruction algorithms. A fast, versatile, modular and dynamic approach to track reconstruction and event building is required. Such a scheme is currently under development in Uppsala. This talk will address the reconstruction algorithms used in the scheme such as the cellular automaton and the Riemann fit. The computing requirements and challenges will also be discussed.