The need to process documents on paper by computer has led to an area of research that may be referred to as Document Image Understanding (DIU).The goal of DIU system is to convert a raster image representation of a document. For Example, A hand written Gregg shorthand character or word is converted into an appropriate Symbolic Character in a computer (It may be a scanned character or online written character).Thus it involves many disciplines of computer science including image processing, pattern recognition, natural language processing, artificial intelligence, neural networks and database system. The ultimate goal of this paper is to recognize hand written Gregg shorthand character and Gregg shorthand word.