This document presents a study on developing an automatic image processing method to detect and count red blood cells from peripheral blood smear microscope images. The method first uses various image processing techniques like histogram equalization, edge detection, dilation and erosion to extract individual red blood cells from the images. Neural networks are then used to classify the extracted cells as red blood cells, white blood cells or sickle red blood cells. Only the cells classified as red blood cells are counted. The study found that the proposed method achieved a sensitivity of 0.86, specificity of 0.76 and accuracy of 0.74 compared to manual counting. This automatic method can help reduce the workload and tedium of manual blood cell counting.