A modified simplified Pulse Coupled Neural Network (PCNN) model is proposed in this article based on simplified PCNN. Some work have done to enrich this model, such as imposing restrictions items of the inputs, improving linking inputs and internal activity of PCNN. A self-adaptive parameter setting method of linking coefficient and threshold value decay time constant is proposed here, too. At last, we realized image segmentation algorithm for five pictures based on this proposed simplified PCNN model and PSO. Experimental results demonstrate that this image segmentation algorithm is much better than method of SPCNN and OTSU.