This document describes a method for segmenting gray scale images using iterative triclass thresholding based on Otsu's method. It begins with applying PCA to reduce the image to a single band. Otsu's method is then used to initially segment the image into foreground, background, and a third region to be further processed. Morphological operations like dilation and erosion are applied for smoothing. The threshold is recalculated and triclass partitioning is repeated iteratively until the target regions are extracted with better accuracy. The method provides low complexity segmentation with better noise removal and object detection performance.