Abstract: The conventional method used to detect an underwater target is by sending and receiving some form of acoustic energy. However, acoustic systems have limitations in the range resolution and accuracy. while, the potential benefits of a laser-based underwater target detection include high-directionality, high response, and high precise range accuracy. Lasers operating in the blue-green region of the light spectrum have potential applications in the area of detection and ranging of submersible targets due to minimum attenuation through water and maximum laser reflection of estimated target to provide a long range of detection. The laser echoes from different targets (metal, plastic and wood) were detected using high resolution CCD camera and digital image processing and pattern recognition techniques were applied to detect and discriminate the echoes from these targets by background subtraction and edge detection techniques. As a conclusion, in this paper we present a potential high response laser imaging system to detect and discriminate small size underwater targets.