Compression means reducing the volume of data for representing an image the main aim of image compression is to reduce both spatial and spectral redundancy to store transmit data in a proper manner. After the compression of receiver to reproduce the original image .various compression techniques are used for this purpose. In lossless image compression, some form of entropy coding issued, while in lossy compression transform coding and predictive coding is used. With the inherent features of wavelet transform, it provides multi-resolution functionality and better compression performance improving the signal to noise ratio. For this purpose many wavelet based algorithms have been implemented. For constructing bi-orthogonal wavelets, lifting scheme is the proposed method used in image compression.