In medical science, diagnosis and prognosis is one of the most difficult and challenging task because of restricted subjectivity of the experts and presence of fuzziness in medical images. In observing the severity of several diseases, different professional experts may result in wrong diagnosis. In order to perform diagnosis intuitively in the medical images, different image processing methods have been explored in terms of neutrosophic theory to interpret the inherent uncertainty, ambiguity and vagueness. This paper demonstrates the use of neutrosophic theory in medical image denoising and segmentation where the performance is observed to be much better.