This paper presents two segmentation algorithms for MR spine image segmentation helping in on time diagnosis of the spine hernia and surgical intervention whenever required. One is level set segmentation and another one is watershed segmentation algorithm. Both of these methods have been widely used before (Aslan, Farag, Arnold and Xiang, 2011) (Pan, et al., 2013) (Silvia, España, Antonio, Estanislao , and David, 2015) (Erdil, Argunşah, Ünay and Çetin, 2013) (Claudia. Et al, 2007). In our approach we have used the concept of variational level set method along with a signed distance function and is compared with the watershed segmentation which we have already implemented before on a different dataset (Hashia, Mir, 2014). In order to check the efficacy of the algorithm it is again implemented in this paper on the sagittal T2-weighted MR images of the spine. It can be seen that both these methods can become very much valuable to help the radiologists with the on time segmentation of the vertebral bodies as well as of the intervertebral disks with relatively much less effort. They both are later compared with the golden standard using dice and jaccard coefficients.