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Image Steganography using Discrete Wavelet Transform(DWT) and Hybrid Wavelet Transform, the secret image is first compressed using hybrid wavelet transform and then encrypted and embedded in frequency domain. The network bandwidth can be saved by compressing the secrete image with out compromising in the quality of the secret image. The cover and secret images are normalized and the wavelet coefficients are obtained by applying discrete wavelet transformation. The wavelet transform helps in separating the high frequency and low frequency information on a pixel by pixel basis. The wavelet coefficients of both the cover and payload images are fused into single image. The capacity is increased as only the approximation band of the secret image is considered. The size of the hidden image can be twice the size of the cover image or even bigger. The entropy, mean squared error and capacity are …