The document presents a project report on developing a license plate recognition system with three main modules: license plate detection using morphological operations on yellow plates, character segmentation using histogram projections, and optical character recognition using template matching. The system was able to successfully detect license plates in 90% of images tested but character recognition accuracy was limited to 65% due to issues with character segmentation, especially for plates at an angle. Future work focused on improving character segmentation and handling plates with different colors.