Image acquisition and transmission stands challenging in applications such as medical imaging, underwater imaging, image segmentation and face recognition where images are often corrupted by impulse noise. The key aim is to reduce the impulse noise effectively by less number of computations, less memory, less power consumption and yet achieving good visual quality of the images compared to the existing techniques. In this paper, a new intelligent low cost hardware module suitable for reduction of impulse noise is proposed. The technique which we follow here is Improved Simple Edge Preserved Denoising (ISEPD) technique with variable threshold. Simulation results show that the PSNR has improved compared to other previous techniques. Synthesis results show that the processing rate is 133 M samples/second by using TSMC 0.18μm technology. © 2011 IEEE.