We describe a knowledge-driven algorithm to automatically delineate the caudate nucleus (CN) region of the human brain from a magnetic resonance (MR) image. Since the lateral ventricles (LVs) are good landmarks for positioning the CN, the algorithm first extracts the LVs, and automatically localizes the CN from this information guided by anatomic knowledge of the structure. The face validity of the algorithm was tested with 55 high-resolution T1-weighted magnetic resonance imaging (MRI) datasets, and segmentation results were overlaid onto the original image data for visual inspection. We further evaluated the algorithm by comparing automated segmentation results to a "gold standard" established by human experts for these 55 MR datasets. Quantitative comparison showed a high intraclass correlation between the algorithm and expert as well as high spatial overlap between the regions-of-interest (ROIs) generated from the two methods. The mean spatial overlap +/- standard deviation (defined by the intersection of the 2 ROIs divided by the union of the 2 ROIs) was equal to 0.873 +/- 0.0234. The algorithm has been incorporated into a public domain software program written in Java and, thus, has the potential to be of broad benefit to neuroimaging investigators interested in basal ganglia anatomy and function.