Data hiding techniques have taken important role with the rapid growth of intensive transfer of multimedia content and secret communications. Steganography is the art of hiding information in ways that prevent detection. The wavelet transform has gained widespread acceptance in image processing. Discrete Wavelet Transform performs a multiresolution analysis and space frequency localization. The proposed Steganography algorithm works on the haar and daubechies wavelet transform coefficients of the original image to embed the secret image. Here discrete wavelet transforms is used to transform the both original image and secret image. So discrete wavelet transforms allows perfect embedding of the hidden message and reconstruction. As compared to the current transform domain data hiding methods[1] this scheme can provide an efficient capacity for data hiding without sacrificing the original image quality

Discrete Wavelet transforms, Bit Plane Complexity segmentation, Capacity