This paper presents an improved algorithm for implementation of skin cancer detection. In this era, skin cancer is the common cause for death of millions. In skin cancer, some abnormal cells grow on skin which create difference in normal skin and diseased skin. System designed in paper ensures real time processing for both skin color module and binary projection. Skin cancer detection is widely open area for researches. System can be implemented in both hardware and software. Improved algorithm reduces number of computations and is not much complex as of widely known algorithms. The system was implemented on MATLAB for performing experiments. Results from MATLAB were used for implementation of system onto Altera DE2-115 Cyclone IV E Field Programmable Gate Array (FPGA) using Qsys. This system gave enhanced performance over many previous research studies. © RJPT All right reserved.