Emotion plays a vital role in human communication. It is necessary to understand the emotion to get the intention of the communication. In today’s world, humans interact with machines and computers in day-to-day life. Thus, automatic understanding of human emotions by machines eases and improves human-machine interaction efficiently. Also, analysis of emotion helps in understanding the mental state of the people and diagnosis of psychological disorders. Electroencephalography (EEG) is a non-invasive technique widely used to analyze human emotional states. The physiological changes in the EEG signal due to emotion elicitation can be analyzed to understand and classify the emotional states in terms of valence and arousal dimensions. In this research proposal seminar, methodology and preliminary results will be presented.