This project proposes diabetic retinopathy detection using deep learning algorithm. Predicting the presence of Microaneurysms in the fundus images and the identification of diabetic retinopathy in early stage has always been a major challenge for decades. Diabetic Retinopathy (DR) is affected by prolonged high blood glucose level which leads to microvascular complications and irreversible vision loss. Microaneurysms formation and macular edema in the retinal is the initial sign of DR and diagnosis at the right time can reduce the risk of non-proliferated diabetic retinopathy. The rapid improvement of deep learning makes it gradually become an efficient technique to provide an interesting solution for medical image analysis problems. The proposed system analysis the presence of microaneurysm in fundus image using convolutional neural network algorithms that embeds deep learning as a core component accelerated with GPU(Graphics Processing Unit) which will perform medical image detection and segmentation with high performance and low latency inference. The semantic segmentation algorithm is utilized to classify the fundus picture as normal or infected. Semantic segmentation divides the image pixels based on their common semantic to identify the feature of microaneurysm. This provides an automated system that will assist ophthalmologists to grade the fundus images as early NPDR, moderate NPDR, and severe NPDR. The Prognosis of Microaneurysm and early diagnosis system for non – proliferative diabetic retinopathy system has been proposed that is capable to train effectively a deep convolution neural network for semantic segmentation of fundus images which can increase the efficiency and accuracy of NPDR (non-proliferated diabetic retinopathy) prediction. This project is implemented with MATLAB software.