Diabetes mellitus, a metabolic disorder, has become one of the rapidly increasing health threats both in India and worldwide. The complication of the diabetes associated to retina of the eye is diabetic retinopathy. A patient with the disease has to undergo periodic screening of eye. For the diagnosis, ophthalmologists use colour retinal images of a patient acquired from digital fundus camera. Therefore segmentation of retinal vasculature is of primary interest in the detection of retinopathy. Filter based approach with a bank of Gabor filters is used to segment the vessels. A set of 12 filters with different orientations in the range of 0 to 170 degrees are convolved with the image and only the maximum response at each pixel is retained. To classify the pixels into vessels and non vessels entropic thresholding based on gray level co-occurrence matrix is applied.The accurate segmentation of optic disc is often an essential prerequisite step in identification of other retinal anatomical and pathological features. Optic disc localization and its exact boundary detection have been addressed in this work. Iterative thresholding method followed by connected component analysis is employed to locate the optic disc.