This document discusses image compression using the discrete wavelet transform (DWT) as outlined in the JPEG2000 standard. It presents the basic block diagram of image compression, including the encoder and decoder. It demonstrates color and gray-scale image compression across multiple levels of compression, showing the original and compressed images. It concludes that DWT provides high compression ratios while maintaining image quality and outperforms other traditional techniques. Future work is proposed to implement neural network-based compression.