License plate localization (LPL) and character segmentation (CS) play key roles in the license plate (LP) recognition system. In this paper, we dedicate ourselves to these two issues. In LPL, histogram equalization is employed to solve the low-contrast and dynamic-range problems; the texture properties, e.g., aspect ratio, and color similarity are used to locate the LP; and the Hough transform is adopted to correct the rotation problem. In CS, the hybrid binarization technique is proposed to effectively segment the characters in the dirt LP. The feedback self-learning procedure is also employed to adjust the parameters in the system. As documented in the experiments, good localization and segmentation results are achieved with the proposed algorithms.