A machine vision system based on Artificial Neural Network (ANN) for inspection of IC Engine block was developed to identify the misalignment and improper diminishing of holes in the IC Engine block. The developed machine vision and ANN module is compared with the commercial MATLAB® software and found results were satisfactory. This work is broadly divided into four stages, namely Intelligent inspection module, Machine Vision module, ANN module and Expert system module. A system with a camera was used to capture the various segments of head of the IC Engine block. The captured bitmap format image of IC Engine block has to be filtered to remove the noises present while capturing and the size is also altered using SPIHT method to an acceptable size and will be given as input to ANN. Generalized ANN with Back-propagation algorithm was used to inspect the IC Engine block. ANN has to be trained to provide the inspected report.