The neutron radiography system installed at the E-2 experimental hole of the KUR (Kyoto University Reactor) has been used for some NDT applications in the nuclear field. The on-line video image processing system of this facility is introduced in this paper. A 0.5 mm resolution in images was obtained by using a super high quality TV camera developed for X-radiography viewing a NE-426 neutron-sensitive scintillator. The image of the NE-426 on a CRT can be observed directly and visually, thus many test samples can be sequentially observed when necessary for industrial purposes. The video image signals from the TV camera are digitized, with a 33 ms delay, through a video A/D converter (ADC) and can be stored in the image buffer (32 KB DRAM) of a microcomputer (Z-80) system. The digitized pictures are taken with 16 levels of gray scale and resolved to 240 x 256 picture elements (pixels) on a monochrome CRT, with the capability also to display 16 distinct colors on a RGB video display. The direct image of this system could be satisfactory for penetrating the side plates to test MTR type reactor fuels and for the investigation of moving objects.