JPEG 2000 is a new image coding system that uses state-of-the-art compression techniques based on wavelet technology. As interactive multimedia technologies evolve, the requirements for the file format used to store the image data continue to evolve. The size and bit depth collected for an image to increase the resolution and extend the dynamic range and color gamut. Discrete Wavelet transform based embedded image coding method is the basis of JPEG2000. Image compression algorithm for the proper use and display of the image is a requirement for digital photography.