This document discusses an efficient auto annotation system for tag and image based searching over large datasets. It proposes an algorithm that incorporates advantages from other algorithms to improve accuracy and performance of image retrieval in a peer-to-peer framework. Key features extracted for image matching include color, shape, and texture. Experimental results on a dataset of 500 images showed the method achieved 92.4% accuracy in retrieving similar images, comparable to other methods. The system allows users to recognize and extract images across peer systems based on image features.