Image processing is a rapidly growing field. There are several transforms that do image transformation i.e image enhancement and segmentation. Among all the transformations spectral transformation is the simplest one because it is similar to the commonly used geometric coordinate transformation except that the geometric coordinates are replaced with the spectral bands. I can perform spectral transformation by different algorithms, in this paper we use spatial domain methods, which operate directly on pixels. In this paper I have implement method for image transformation, segmentation and analysis using spectral transformation technique and develop results using matlab coding for spatial domain methods. In future the matlab code can be converted to VHDL code and implement on FPGA kit inorder to develop ASIC (application specific IC) for image transformation, segmentation and analysis. This will give a generalization to image processing. ©2010 IEEE.