Alphanumeric recognition is a computer aspect that recognizes any digital Image automatically fed from an external source. This system initiates from obtaining digital images, localizing concerned alphanumeric areas, truncating characters and OCR from given alphanumeric characters. This system is intended to be designed and developed for helping in image processing and algorithms to identify the area from where given alphanumeric digits can be identified. These characters in a segmented way are identified with the aid of Open Source Computer Vision Library ( OpenCV) and programmed in python language. In the given source image KNN (k-Nearest Neighbor) algorithm is used to find all possible alphanumeric characters.