In this paper we discussed a new methodology for Urdu Character Recognition system using Dempster-Shafer theory which can powerfully estimate the similarity ratings between a recognized character and sampling characters in the character database. Recognition of character is done by five probability calculation methods such as (similarity, hamming, linear correlation, cross-correlation, nearest neighbor) with Dempster-Shafer theory of belief functions. The main objective of this paper is to Recognition of Urdu letters and numerals through five similarity and dissimilarity algorithms to find the similarity between the given image and the standard template in the character recognition system. In this paper we develop a method to combine the results of the different distance measurement methods using the Dempster-Shafer theory. This idea enables us to obtain a single precision result. It was observed that the combination of these results ultimately enhanced the success rate.