A system for interpretation of images of paper-based line drawings is described. Since a typical drawing contains both test strings and graphics, an algorithm has been developed to locate and separate text strings of various font size, style, and orientation. This is accomplished by applying the Hough transform to the centroids of connected components in the image. The graphics in the segmented image is processed to represent thin entities by their core-lines and thick objects by their boundaries. The core-lines and boundaries are segmented into straight line segments and curved lines. The line segments and their interconnections are analyzed to locate minimum redundancy loops which are adequate to generate a succinct description of the graphics. Such a description includes the location and attributes of simple polygonal shapes, circles, and interconnecting lines, and a description of the spatial relationships and occlusions among them. Hatching and filling patterns are also identified. The performance of the system is evaluated using several test images and the results are presented. The superiority of these algorithms in generating meaningful interpretations of graphics, compared to conventional data compression schemes, is clear from these results. © 1990 IEEE