A star tracker provides the most accurate attitude solution in terms of arc seconds compared to the other existing attitude sensors. When no prior attitude information is available, it operates in "Lost-In-Space (LIS)" mode. Star pattern recognition, also known as star identification algorithm, forms the most crucial part of a star tracker in the LIS mode. Recognition reliability and speed are the two most important parameters of a star pattern recognition technique. In this paper, a novel star identification algorithm with star ID shortlisting is proposed. Firstly, the star IDs are shortlisted based on worst-case patch mismatch, and later stars are identified in the image by an initial match confirmed with a running sequential angular match technique. The proposed idea is tested on 16,200 simulated star images having magnitude uncertainty, noise stars, positional deviation, and varying size of the field of view. The proposed idea is also benchmarked with the state-of-the-art star pattern recognition techniques. Finally, the real-time performance of the proposed technique is tested on the 3104 real star images captured by a star tracker SST-20S currently mounted on a satellite. The proposed technique can achieve an identification accuracy of 98% and takes only 8.2 ms for identification on real images. Simulation and real-time results depict that the proposed technique is highly robust and achieves a high speed of identification suitable for actual space applications.