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The central idea of this paper is to develop an algorithm that embeds the watermark information without much distortion to the Image, while making it possible to extract the watermark by use of correlation. We begin by modifying the frequency coefficients of the Image, based on human visual systems perception of Image content, which is used to embed a watermark such that its amplitude is kept below the distortion sensitivity of the pixel and thus preserving the Image quality. The operation of embedding and extraction of the watermark is done in frequency domain, and it is checked for different noise attacks like salt and pepper and Gaussian. We spread spectrum technique for watermarking, such as pseudo random sequences enabling an easier generation, encryption and much better detection of the watermark. This water marking scheme deals with the extraction of the watermark information in the absence of original Image ie blind watermarking, also we make use correlation based watermark detection.