A microcomputer-based image processing system was constructed to acquire, process and display images of transmission electron micrographs. The system hardware consisted of a video camera, microcomputer unit, video digitiser and frame buffer boards. The software developed consisted of powerful functions for image display, saving and image manipulation. Other functions such as filtering and contrast enhancement were also included. The user is offered a friendly interactive environment, and no previous experience in image processing or computer programming is needed to operate the system. Development of an efficient program allowed many functions to be executed with the limited resources available on the microcomputer unit. Calculated theoretical images created by the system are compared with experimental images taken by the video camera. Images are displayed on the video monitor which are more meaningful to human eyes than conventional hard copy printouts. Also, the use of contrast enhancement techniques allows hidden information to be extracted from experimental images. Preliminary studies of identifying stacking faults in transmission electron microscopy using this system were very encouraging.