Abstract— In our present day life vehicles play an important role in transportation system and their practice is increasing exponentially. Modern vehicles are coming into usage by the invention of modern technology. So their tracking has an important role to play. We are implementing a system which keeps track of the vehicles that are entering and leaving into a certain locality. We are using the vehicle license plate detection and recognition technology. we the image processing techniques to perform the above task. First we use camera for capturing the image of the vehicle.Then The next step is to separate out the license plate region from the image.After separating the license plate from the image next step is to separate the characters and the final step is recognition of characters.After recognizing the characters we will pass the value of the number plate detected to the Arduino server which arranges the data coming from the nodes in order.When we access the server using web browser it displays the data coming from each node.I. INTRODUCTIONIn our present day life vehicles play an important role in transportation system and their usage is increasing exponentially. Modern vehicles are coming into usage by the invention of modern technology. So their tracking has an important role to play.They can be tracked with the help of their license plate.By tracking the license plate we can get the complete details of the vehicle like who owns it and in which area it is registered..License plate detection is very useful in security applications.So by considering all these we have implemented a technique to detect the license plate and recognize the charcters.Over the course of time many techniques have been developed to detect and recognize the license plate but still it is a task with many challenges.The total process is explained in terms of simple steps.Each step has its own importance in the successful completion of th process.The first step is to capture the image of the vehicle using camera.The next step is processing.In this step We will convert the RGB image to the Grayscale image and we will remove the noise using median filtering and Finally we use adaptive thresholding method to convert the grayscale image to the binary image. Then the next step is to extract the license plate region from the thresholded image.The next step is, each charcter is separated from the license plate.This step is called as character segmentation.This step is thevital step to the whole process.If the segmentation is not done properly there is a risk of getting inaccurate results..Each character is recognized by using the .Knn algorithm.First we will train our algorithm with different types of characters and then the characters are recognized using the knn algorithm.