With growing urbanization and increasing car traffic, city infrastructures must implement parking space management. This paper presents a MATLAB-based Automated Car Parking Indicator System for solving problems in parking space management. In the suggested system, image processing is used to monitor the occupancy of the parking lots. A carefully installed camera network captures real-time photos of parking lots. These pictures are processed in MATLAB’s image processing package, which tells whether each parking space has cars in it. That technology depends on powerful algorithms for picture segmentation, which identify the occupied and vacant parking spaces. The real-time condition of parking is realized by continual evaluation of collected photos. A processed data result is then sent to a central control unit which runs the parking lot. The Automated Car Parking Indicator System incorporates a user interface that allows the driver to remotely get information about a parking spot. This improves user experience and accessibility to the latter. This interface could be a smartphone app or even a display panel at the entrance to the parking. The accuracy and efficiency of the parking spot monitoring system are enhanced through the sophisticated image processing platform available in MATLAB. In sum, the Automated Car Parking Indicator System with MATLAB offers a cutting-edge and effective solution to urban parking management issues. The technology optimizes parking space usage and improves urban traffic flow and user experience.