Measurement of cytological features and DNA content was made on epithelial cells from 40 cases of gastric dysplasia and carcinoma graded by subjective scoring with IBAS image analysis system. The measurements were statistically compared with the subjective scores by using discriminant analysis. The result was noticed to provide significant discrimination between the different groups; and nuclear area, nuclear perimeter, nuclear form factor, percentage of 2C cells and percentage of aneuploid cells were all proved to be discriminating variables. Application of classification equation derived from discriminant analysis showed good results for the prediction of different individual cases.