This document presents a comparative analysis of DCT and DWT based watermarking techniques. It proposes algorithms for embedding and extracting watermarks in the DCT and DWT domains. The DWT method embeds the watermark in the low-low frequency region and is shown to be more robust to attacks like noise addition and region tampering compared to the DCT method. Results demonstrate that DWT provides better imperceptibility and fidelity than DCT, especially at lower embedding strengths. However, robustness decreases with lower strengths. An embedding strength of 10 is identified as a good balance for all parameters. In conclusion, DWT is found to be a better technique than DCT for digital image watermarking applications.