In present scenario biometric systems are widely used in various applications, but the recent biometric technology faces security issues like stored biometric template attack, where the original data is tampered such that it cannot be retrieved and the storage space issues like requirement of large storage space for biometric data of large population. To avoid such security and compression issues a novel method is proposed. The proposed Peppy Wavelet Watermarking Algorithm (PWWA) is based on Discrete Wavelet Transform (DWT) and Discrete Cosine Transform (DCT) watermarking techniques which combines the virtues of CSPRNG-2 and GDA to provide efficient watermarking. The watermark image is recovered by reverse embedding procedure utilizing the proposed Peppy Wavelet Watermark Extraction Algorithm (PWWEA). To verify the performance, various types of noises are added to the embedded image and recovery operation is performed. The performance parameters are then evaluated for comparison.