Accurate detection of defects through machine vision improves the economical growth of wood industry. In this paper six common defects on wood surface are considered for study. Quality of wood image is enhanced by Histogram Equalization method. Contrast enhanced images are subject to Thresholding segmentation which examines the objects in the image and identifies the defect. The segmented images are cropped in to small blocks. Segmentation- based Fractal Texture Analysis (SFTA) feature extraction method is accomplished to extract 21 texture features from the wood images. The extracted features are fed in to the training algorithms such as Levenberg-Marquardt, Scaled Conjugate Gradient, Gradient Descent with Adaptive Learning Rate, Bayesian Regularization and Resilent Backpropagation. The Performance of training algorithms are analyzed with several performance metrics. The result obtained shows a considerable improvement in accuracy of 98.2 % by Bayesian Regularization tool. © The Authors.