Diabetic retinopathy is the commonest cause of blindness. Diabetes causes cataracts, Glaucoma and diabetic retinopathy. The Optic Disc is the exit point of retinal nerve fibers from the eye and the entrance and exit point for retinal blood vessels. The detection of Optic Disc is very essential to locate the various anatomical features in the retinal images. We describe a new filtering approach in the wavelet domain for image preprocessing. Sobel edge detection, Texture Analysis, Intensity and Template matching was used to detect Optic Disc. The proposed algorithm is tested on 150 images of Messidor dataset. Experimental results indicates that we are able to achieve 87.54% sensitivity, 99.76% specificity and 99.81% accuracy.