The task is to build an intelligent sensor that can instruct a lego robot to perform certain tasks. The sensor is mounted on a lego robot and it contains a digital camera which captures continuous image from the front view of robot. These images are received by an FPGA which stores these in an external storgae device (SDRAM). At one time only one image is saved and during the time it is saved in SDRAM FPGA performs some certain tasks on the image to extract some meaningful information like RGB values.... In front of camera there are differnt objects. The sensor is made to classify different objects on the basis of their color. For the classification, the requirement is to implement color image segmentation based image tracking algorithm on a small Field Programable Gate Array (FPGA). Color segmentation is done with the help of RGB values and with the comparison of these values we get a binary image which is further utilised to determine the shape of object.