Hierarchical Texture Segmentation using Wavelet packet decomposition performs an unsupervised classification of Texture features, extracted using wavelet packet decomposition to generate a segmented image. Recursive decomposition of both the approximation and the detail coefficients derived from the original signal provides a wider spectrum for richer feature extraction. This Texture Segmentation works well for Texture images with only two Textures. This approach can be used for shape extraction, detecting industrial defects, and for text extraction.