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Image processing and analysis to diagnose retinal disease such as diabetic retinopathy (DR) productive computer based screening of large, populations at low cost require robust, automated image analysis. The diabetic patients have many disorders in their eyes. This research relies on the problem of detecting those abnormalities in the eye of a diabetic patient for the earlier detection of DR. Here a methodology is presented for the automatic detection of the blood vessels and abnormalities in the eye of diabetic patients using digital image processing algorithm (DIP). DIP allows the use of much more complex algorithm for image processing and hence offers more sophisticated performance of simple task.