In production industries and chemical plants there are some repetitive and tedious jobs that require a lot of monotonous actions, like moving objects. These activities are time bound which cannot be managed by humans alone. Automatic Guided Robot system is a reprogrammable robot which will be able to identify objects on its own and it will carry the identified object to its destination. System uses image processing for comparison of two images, image captured by camera and required image. Wireless camera is used to capture an image and the captured image is transferred to the computer using an RF module. Microcontroller AT Mega 16 will control the robot arms and wheels and works as per commands by computer