This project represents the technology which helps to sorting quality wise fruits. Use of this technology is increasing in agriculture and fruit industry. An automatic fruit quality inspection system for sorting and grading of fruits discussed here. The main aim of this system is to replace the manual inspection system. This helps in speed up the process improve accuracy and efficiency and reduce time. This system collect image from camera which is placed on conveyor belt. Then image processing is done to separate fruits. Colour detection is done based on thresholding and size detection is based on binary image of fruits. Sorting is done based on color and grading is done based on size.