Steganography is the practice of concealing messages or information within other non-secret data or text or an image. Many different carrier file formats can be used, but digital images are the most popular because of their frequency on the internet. It serves as a better way of securing message than cryptography which only conceals the content of the message not the existence of the message. Steganography is a useful tool that allows covert transmission of information over the communication channel. Combining secret a message with the carrier image gives the hidden image. The hidden image is difficult to detect without retrieval. In image based Steganography, the least three significant bits and pseudo random encoding technique is used on images to enhance the security of the communication. By using the key, the chance of getting attacked by the attacker is reduced. This work is enhanced with the topics like literature survey, experimental results etc.