Abstract: A banknote recognition photoelectric system based on grating spectrometer was developed, in which aphotomultiplier tube was used as a detector and a computer sampling interface was designed by VC++ language. The fluorescence spectral characteristics of the banknote are analyzed when it is stimulated by a ultraviolet lamp. The optical system, the optoelectronic signal detection and the signal processing system were designed based on fluorescence spectral analysis. The testing results indicate that the fluorescence spectral characteristics of the true banknote are quite different from those of the counterfeit, their peak values appear at 545nm and 525nm respectively. The fluorescence recognition system is sensitive and reliabile.