Abstract: The automatic tube processing system and method utilizes an automatic laser inspection system capable of inspecting the face of a tube for defects during the manufacturing process of the tube. The automatic tube processing system and method comprises a light source, such as a laser, positioned near a tube for transmitting light onto the face of the tube. The tube and the light source may be rotated relative to one another to enable the entire face of the tube to be inspected. An electrical receiver for detecting light reflected from the face of the tube is positioned near the light source. The electrical receiver is capable of determining a height differential on the face of the tube and capable of producing an output to be analyzed by a processing means. A monitor displays the output from the processing means in the form of a graph.