Abstract:The developed system first detected the vehicle, and then capture the image of the vehicle. The Vehicle Number Plate area is extracted using image splitting. Optical Character Recognition method may be applied for character recognition. Extracted letterings, are cast-off for the comparison records on Database, so that specific information, such as information of owner of the vehicle, place of registration, and address of the owner can be revealed. This algorithm is implemented using MATLAB software, and the performance is tested on numeric digits from 0 to 9, and alphabets from A to Z. It is observed from the simulation, that the proposed algorithm successfully detects, and recognize 32 characters among 36. Therefore, in order to recognize remaining two characters (M & W) one other field has been introduced, while for the last two characters (0 & o) an algorithm by considering the Indian Government Traffic Rule is use. Keywords:ITMS, ALPR, Pel, ANPR.