Coins are the vital part of our life. It is used at every point whether it is small cafe or in mall. So it's our fundamental need to recognize the coins. Image Processing is a field in which working is done on images. By using this, recognition of different denomination of coins is done. For recognition, first canny edge detection is used to detect edges then Hough Transformation is used to detect coin and then coin partial overlapping is removed. The Hough Transformation is used because it is less prone to noise. GUI will also be created which make system more users friendly and interactive. This can be implemented using MATLAB.