Image Processing is playing an important role in Ophthalmology to deal with Eye diseases. Image processing helps doctors to identify diseases and analyse them with ease. It enhances retinal images to identify eye diseases such as diabetic retinopathy, retinal vein occlusion, retinal detachment, glaucoma, etc.. Various technologies are used in medical imaging. In order to enhance the images obtained by fundus microscope and give a clear output, various techniques are used such as contrast stretching, histogram analysis, edge detection, detection of blood clotting in retinal images, redness of colour fungus image and measurement of the damaged portion in the fungus image. Image Processing Software is developed for Ophthalmology. Ophthalmology is a challenging field. The diagnosis of most eyes related and some other diseases like diabetes require the observation of changes in anatomical structure of eye. The doctors can diagnose the disease of eye, if they have clear retinal images. Problems related to eyes are very common in rural and semi-urban areas and to meet the requirement of rural population, a low cost eye care system is designed and developed. In order to enhance the images obtained by fundus microscope and give a clear output, various algorithms are designed.