This paper discusses the development of an automated sorting machine designed as a comprehensive mechatronics educational project. The project integrates mechanical and electrical design, incorporating a robot arm, a microcontroller, sensors, and actuators. The sorting machine uses color identification to sort wooden blocks of three different colors. The blocks are stacked and dropped onto a conveyor belt by a hopper system that employs a solenoid actuator and a servo to release one block at a time at specific intervals. As the belt runs continuously, each block passes under a color sensor, which monitors the color and signals one of three servo-powered mechanical arms to guide the block into the appropriate chute. Each chute is equipped with a capacitive proximity sensor that sends a voltage signal to the robot controller, queuing commands for the robot to pick up the blocks from the bottom of each chute and return them to the hopper to form a continuously running sorting system. This paper details the design and integration of the system’s various elements and the development of the control software. The designed system can drop blocks every 8.05 s, sort each block within 5 s of being sensed, and return them to the sorting system every 12 s. It has a color-sensing accuracy of 97%, with a failure rate of around 7%. The system achieved quick and reliable sorting using various low-cost, accessible, and open-source parts. The project exemplifies a cost-effective solution suitable for mechatronics education, demonstrating the numerous challenges involved in developing automated sorting systems.