A system and a method for searching an image within another image are disclosed. The method includes producing template edge images and target edge images, having image scales, based on determination of edge gradients of a template image and a target image in one or more directions. The template image indicates an image to be searched. The target image indicates another image within which the image needs to be searched. Further, images comprising correlation coefficient values are produced for each of the directions by computing correlation coefficients between the template edge images and the target edge images. At least one local peak is identified from each of the images comprising the correlation coefficient values. Spatial locations along with the correlation coefficients corresponding to the local peak are determined. Thereafter, a presence of the template image in the target image is identified based upon an intersection of the spatial locations.