In today's world, Image compression is a very important tool to save the amount of space the image uses for its storage. In recent days, as the image sharing and transmitting in social media has been the trending topic, compression of the image has become more significant and vital. Compression can be either lossy or lossless. With the lossless compression, after reconstructing the original image using some decompression technique, the final image obtained is numerically equal to the input image. The lossless compression technique can be applied to video also but this is seldom used, as the lossy compression provides better compression ratios without much loss in the quality of the video. There are many compression techniques for compressing the image. One of the most common methods of image compression is the Discrete Cosine Transform method. In spite of several advanced image compression methods being used, the basic steps used for still image compression can also be used alongwith the inclusion of motion estimation and compensation. In this project, image compression is achieved by applying the Discrete Cosine Transform method.