An Field Programmable Gate Array (FPGA) based embedded vision system capable of recognizing objects in real time is presented in this paper. The proposed system architecture consists of multiple Intellectual Properties (IPs), which are used as a set of complex instructions by an integrated 32-bit CPU Micro blaze. Each IP is tailored specifically to meet the needs of the application and at the same time to consume the minimum FPGA logic resources. Integrating both hardware and software on a single FPGA chip, this system can achieve the real-time performance of full VGA video processing at 32 frames per second (fps). In addition, this work comes up with a new method called Dual Connected Component Labeling (DCCL) suitable for FPGA implementation.