Diabetic retinopathy (DR) is a common retinal complication associated with diabetics. A complication of diabetes is that it can also affect various parts of the body. When the small blood vessels have a high level of glucose in the retina, the vision will be blurred and can cause blindness eventually, which is known as diabetic retinopathy. However, if symptoms are identified in the early stage then proper treatment can be provided to prevent blindness. Usually the retinal images obtained from the fundus camera are examined directly and diagnosed. Due to this certain abnormalities due to diabetic retinopathy are not directly visible through the naked eye .Hence by using the image processing techniques these abnormalities can be extracted accurately and required treatments and precautions can be taken. And this also reduces the time for the ophthalmologists to detect the disease and give accurate treatments. Keywords— Diabetic, Exudates, Feature, Fundus Camera, Image, Micro-aneurysms, Processing, Retinopathy.