A modified Freeman chain code algorithm to determine the number of overlapped regions in citrus binary images was proposed. Three components, including S, 8, and 9, were inserted in the original Freeman code. During the identification process, the improved chain code was first obtained. Then the appeared times of code “8” was computed. The number of fruits in the overlapped regions can be obtained according to the outline of the fruits. The improved chain code algorithm was applied to evaluate the citrus images. The experimental results showed that the proposed algorithm was effective in identifying the overlapped fruits when the number of overlapped regions was between 2 and 3 where it achieved accuracy of 100%.