Abstract: The author studied various blood samples and developed a new auto- recgnition and counting algorithm to count and analyze healthy red cells and parasitized red cells in blood smear taken at different infection stages using a PDP 11/34 colour image processing system. The developed new algorithm has been written in FORTRAN 77 and compared with the common registration algorithm.The results show the new method is much faster and more feasible than the registration method which needs large memory that PDP 11/34 can not afford to process a 512×512×8bit image.