This document presents a method for detecting and classifying lung nodules using Faster R-CNN technique. It first segments the lung from CT images and extracts features using Dual-Tree Complex Wavelet Transform. A Back Propagation Neural Network is then used to classify patterns of interstitial lung diseases detected in the images. Fuzzy clustering is also proposed to segment abnormal regions of the lung. The method aims to help identify and diagnose common lung diseases like pleural effusion and interstitial lung disease in an automated manner from CT images.