The specific objectives of the Phase II work are as follows: 1. Thoroughly test and enhance algorithms developed in Phase I for dual band IR target detection in more complex background clutter. 2. Investigate and develop efficient algorithms for target tracking and discrimination with dual band IR data. 3. Investigate and develop efficient algorithms for background clutter degmentation and characterization. 4. Evaluate sub-band performance and investigate suitable sub-band selection for target discrimination with dual band IR data in different environmental conditions. 5. Investigate concepts and methodologies for real-time implementation of an intelligent shipborne system for dual band IR target discrimination in the presence of complex background clutter. 6. Develop a software package to validate the concepts and methodologies proposed in task 5. 7. Perform sensitivity analysis on the performance of each component and of the whole target discrimination system using real/simulated dual band IR data. 8. Propose a comprehensive plan for operational testing of the software system developed for this study. 9. Prepare technical reports on algorithms, software, and system user guide.