The recognition of vehicle license plate system is considered to be one of the important computer intelligentsystems. In this research a simple algorithm is proposed to analyze and recognize the new style of Iraqi vehiclelicense plates. The proposed algorithm based on some steps performed respectively, first step is the colorrecognition of the right hand rectangle bar of the license plate to decide the class of the vehicle using theproperties of HSV color model, second step is to analyze the Arabic alphanumeric region of the license plate inorder to recognize the Arabic (Hindi Numeral System) numbers by testing geometric areas, and recognizing theArabic Letter by indicating and measuring the extrema points of the letter image under process, the third step isto analyze the state name to decide which state the vehicle registered in.The proposed system is tested onsamples of license plate captured images using digital camera with fixed distance from the vehicle (5 meters),the results of the analyzing were accepted of about 75% and failed by 25%.