A novel real-time optical processor is demostrated by using a Ti, Cu:KNSBN self-pumped phase conjugator to produce opposite reading light and a thin piece of Ce, Fe :LiNbO3 crystal as memory medium. The processor can be used to perform operations of image reversation and 2D image high-and low-pass filtering. The mechanism analyses based on writing and erasure of the hologram, self diffraction and size effect are given.