An automatic grading algorithm was developed to replace the manual trading of white ginseng. The algorithm consists of three consecutive stages, (a) image acquisition and preprocessing, (b) mathematical feature extraction, and (c) grade decision using artificial neural network. Mathematical features such as area ratio, mean and standard deviation of graylevel, skewness of graylevel histogram, and the number of run segment are extracted from five equally divided parts of ginseng. An artificial neural network model was used to classify white ginsengs into three categories. The performance of the algorithm was evaluated using 120 ginseng samples and the rate of successful classification was 74%.