An olive seperation machine based on image processing has been developed in this study. For this purpose, mechanical and electronical design of the machine was performed. In the part of mechanical design, the air valves were used for separation of olives. The air valves were controlled with an electronic card according to output of the image processing algorithm. The position of the olives that were detected as black was switched and then the olives are thrown to a storage case. AN industrial digital camera was used for image processing, and an image processing algorithm is developed in Visual Basic 6.0 environment. The outputs of image processing algorithm were sent to electronic card by serial port. The image processing algorithm developed could process 30 frames per second. The image processing algorithm the system could separate 30 olives per second which is optimal and feasible for real time operation.