According to the drawback of high cost and complicated circuit and inadequate use of resources in DSP and FPGA structure of textile image processing, an image processing system based on Nios II in FPGA is designed. FPGA is the core of the system.Nios II processor is created in FPGA.Video image is acquired by CCD and processed in FPGA. The result shows that the system has some characteristics of small size, low cost, high integration, high stability and flexibility.