License Plate Recognition has been intensively studied in many countries. Due to the different types of number plates being used, the requirements of an automatic number plate recognition system is different for each country. In this paper, a number plate localization and recognition system for vehicles in Myanmar is proposed. This system is developed based on digital images and can be easily applied to toll gate, car parking systems for the use of documenting access of parking services, secure usage of parking houses and also to prevent car theft issues. The proposed algorithm is based on colour based detection and k-Nearest Neighbour(k-NN) with area criteria tests for number plate localization. The next feature is the Euler Number, which is the same as the number of holes in a binary image. Segmentation of the plate characters was achieved by the application of bwboundaries. Removing noise using morphological operation. The character recognition was accomplished with the aid of optical characters recognition(OCR)by the process of Pattern matching. A comparative analysis on the success rate of the proposed system showed overall better success rate of 96.8% by using OCR.