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License plate recognition system (LPR) is an image processing technology used to identify vehicle by their license plate. This technology is gaining popularity in security and traffic installation. Much research has already been done for the recognition of Korean, Chinese, European, American and other license plates. This work presents license plate recognition method pertaining to India as an application of image processing, i.e. the images of license plate are taken and extract the features of license plates for recognition. This work first presents some applications of license plate recognition system. Next, the elements of a typical LPR system are discussed followed by the description of working principle of a typical LPR system. Then structure of proposed license plate recognition system is then presented. The chapter ends with a brief over view of the rest of the work.