There are various kinds of technologies available in the market for categorizing and packaging in the production line. Our project here discusses various image processing techniques and their shortcomings in the process. Our aim is to categorize the defective tablets based on their color shape missing tablets, color changes due to oxidation. The images of the tablet strip are captured using the camera. The features are extracted for a defect-less tablet strip. The input image is compared with the reference image present in the database, the amount of features that can be compared with the pre-loaded reference image is compared for a threshold value and is discarded if found to be less by separating them, and rest are allowed to pass for packaging.