In this study, development and optimization of a Hough transform based real time lane detection algorithm was explored. Finding lane marks by using Hough transform on captured video frames was the main goal of the system. Image processing code was developed on Visual DSP 5.0 environment and the code was run on BF-561 processor embedded in ADSP BF561 EZ KIT LITE evaluation board. The code was optimized into a form which is satisfactory for real time applications. A mobile robot platform was developed during the study and the image processing algorithm was tested on this platform. The experimental results which were obtained before and after the optimization of the code were compared.