Hydrophobicity is an important parameter to characterize electrical properties of insulated materials. Therefore, it is an urgent task to develop on-line instruments to identify the hydrophobicity of insulated material's surface conveniently, quickly and accurately. For this purpose, a novel evaluation system with image processing and decision tree is proposed which is based on embedded platform. For obtaining satisfactory results, we first propose a mixed image segmentation method to overcome the complex conditions outside, concerning non-controlled illumination, nonstandard surfaces and unfixed shooting angle. Then we adopt four new characteristic parameters to describe the image of each sample. Finally, a classification method based on MultiBoost decision tree is conducted which synthesizes the merits of both AdaBoost and Wagging algorithm. Results indicate the procedures can be applied in the DSP (Digital Signal Processor) platform perfectly and better results can be obtained than those did in our previous study or that of some other research.