We propose a novel real-time joint-Transform correlation (JTC) technique for optical pattern recognition. To replace the film recording aspect of performing optical correlation, conventional real-time joint-Transform correlation (JTC) optical systems make use of a spatial light modulator (SLM) located in the Fourier plane to record the interference intensity to achieve real-time processing. However, the use of a SLM in the Fourier plane, is a major drawback in these systems since SLMs are limited in resolution, phase uniformity and contrast ratio. Thus, they are not desirable for robust applications. In this thesis, we developed a hybrid (optical/electronic) processing technique to achieve real-time joint-Transform correlation (JTC). The technique employs acousto-optic heterodyning scanning. The proposed real-time JTC system does not require a SLM in the Fourier plane as in conventional real-time JTC systems. This departure from the conventional scheme is extremely important, as the proposed approach does not depend on SLM issues. We have developed the theory of the technique and substantiated it with optical experimental as well as computer simulation results. / Master of Science