Abstract: Application of the video image recognition technology to the automated guided vehicle system-AGVS is a developing trend in the world. This paper describes the design of a new type of AGVS which uses image recognition technology for tracing the floor strip codes to realize vehicle path guiding and other traveling status control functions. Because of the adoption of special image processing method, the designed AGVS can satisfy the required dynamic response capability in practical application. The system uses low cost CCD device and microcomputer system, which suits the current e conomical and technical situation in China. The research provides a valuable approach to the use of this type of AGVS in the near future.