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This paper proposes a novel algorithm. This algorithm is called Self-Organizing Fuzzy Neural Network (SOFNN). SOFNN revolutionizes how researchers apply control theories, image/signal processing on control systems and other applications. In general, SOFNN is an identification technique that automatically initiates, builds and fine-tunes the required network parameters. SOFNN evaluates required structures without predefined parameters or expressions regarding systems. SOFNN sets out to learn and configure a system's characteristics. Self-constructing and self-tuning features enable SOFNN to handle complex, non-linear, and time-varying systems with higher accuracy, making systems identification easier. SOFNN constructs and fine-tunes the system parameter through two phases. The two phases are the construction and the parameter-tuning phase. The two phases run concurrently allowing SOFNN to identify systems on-line.