Automatic target recognition (ATR) is an important capability for defense applications. Many aspects of image understanding (IU) research are traditionally used to solve ATR problems. The authors discuss ATR applications and problems in developing real-world ATR systems and present the status of technology for these systems. They identify several IU problems that need to be resolved in order to enhance the effectiveness of ATR-based weapon systems. They conclude that technological gains in developing robust ATR systems will lead to significant advances in many other areas of applications of image understanding.< <ETX xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">></ETX>