Webcam based Optical Character Recognition by using Template Matching is a system which is useful to recognize the character or alphabets in the given text by comparing two images of the alphabet. The objectives of this system prototype are to develop a program for the Optical Character Recognition (OCR) system by using the Template Matching algorithm . This system has its own scopes which are using Template Matching as the algorithm that applied to recognize the characters, which are in both in capitals and in small (A – Z),and the numbers (0 -9) used with courier new font type, using bitmap image format with 240 x 240 image size and recognizing the alphabet by comparing between images which are already stored in our database is already . The purpose of this system prototype is to solve the problems of blind peoples who are not able to read , in recognizing the character which is before that it is difficult to recognize the character without using any techniques and Template Matching is as one of the solution to overcome the problem