In today’s world, parking area constitutes nearly most of traffic congestion is caused by vehicles cruising around their destination and looking for a place to park. Due to this reason many day-to-day activities are affected such as waste of time, fuel wastage, frustration to drivers, theft fear, pollution etc. These factors motivated to pave a new method for smart parking system. In this method the detection is reliable, even when tests are performed using images captured from a different viewpoint. It also provides to design a highly reliable & compatible image segmentation measures for parking slot identification system and a user key driven data base measures to detect the vehicle using theft alarm system.