This paper presents a survey on a system that uses digital image processing techniques to identify anthracnose and powdery mildew diseases of sandalwood from digital images. Our main objective is researching the most suitable identification technology for the anthracnose and powdery mildew diseases of the sandalwood leaf, which provides algorithmic support for the real-time machine judgment of the health status and disease level of sandalwood. We conducted real-time monitoring of Hainan sandalwood leaves with varying severity levels of anthracnose and powdery mildew beginning in March 2014. We used image segmentation, feature extraction and digital image classification and recognition technology to carry out a comparative experimental study for the image analysis of powdery mildew, anthracnose disease and healthy leaves in the field. Performing the actual test for a large number of diseased leaves pointed to three conclusions: (1) Distinguishing effects of BP (Back Propagation) neural network method, in all kinds of classical methods, for sandalwood leaf anthracnose and powdery mildew disease are relatively good; the size of the lesion areas were closest to the actual. (2) The differences between two diseases can be shown well by the shape feature, color feature and texture feature of the disease image. (3) Identifying and diagnosing the diseased leaves have ideal results by SVM, which is based on radial basis kernel function. The identification rate of the anthracnose and healthy leaves was 92% respectively, and that of powdery mildew was 84%. Disease identification technology lays the foundation for remote monitoring disease diagnosis, preparing for remote transmission of the disease images, which is a very good guide and reference for further research of the disease identification and diagnosis system in sandalwood and other species of trees.