This document discusses the development and hardware implementation of an efficient algorithm for cloud detection from satellite images. The algorithm uses an adaptive thresholding approach to segment clouds from background pixels in satellite imagery. It then determines the position of the segmented clouds to calculate cloud coverage percentages. The algorithm was tested on satellite images from Spot4 and Landsat archives. It was implemented on a TMS320C6713 DSK processor using Code Composer Studio and achieved accurate cloud detection and coverage calculation on images with resolutions up to 3600x3000 pixels.