The document presents a comparative analysis of lossy image compression techniques using Discrete Cosine Transform (DCT) and Wavelet Transform, focusing on performance metrics such as Peak Signal-to-Noise Ratio (PSNR). Experimentation on various grayscale image types showed that Wavelets outperform DCT at lower bit rates, while DCT performs better at higher bit rates. The findings support the integration of Wavelet-based compression methods in advanced multimedia applications, particularly with the JPEG 2000 standard utilizing Embedded Zero-Tree Wavelet (EZW) coding for improved compression efficiency.