Breast Cancer has become the world largest disease among women. Cancer can be prevented or cured only when it has been detected at the earliest that can save many lives. Digital mammograms are the one and only digital image which can be used with image processing techniques to detect breast cancer at the earliest. The various image processing techniques have been applied to images and the best features are extracted from the image which is further classified into benign and malignant. The classifier is used to find out the different stages in the cancerous patients. The CAD system developed with various image processing technique will assist the radiologist for further investigation of the affected person. The CAD system will easily identify breast malignancy and group all the malignancy which will help the radiologist to proceed with biopsy and chemotherapy so that malignancy is not in the final stage of the affected person. The CAD system has four different stages like preprocessing, segmentation, feature extraction and classification. The classifier used will be a binary classifier stating the class to be benign or malignant. In this paper, all the basic image processing stages have been applied on the digital mammogram and it’s further classified to be cancerous or non-cancerous. © 2016, Institute of Integrative Omics and Applied Biotechnology. All rights reserved.