The document presents a smart parking guidance system that uses image processing techniques to identify vacant parking spots in real-time. The system involves installing a camera above the parking area to capture a video feed. The video is segmented into frames which are preprocessed, enhanced and analyzed using SURF feature extraction and matching to detect vacant spots. Empty spots are assigned unique IDs and drivers are informed of available spaces. The system aims to provide a low-cost solution compared to traditional sensor-based methods. It was implemented and tested using MATLAB for tasks like feature extraction, matching and vacant spot identification.