This document is a thesis submitted by Omar Ghazi Abbood Khukre to the Department of Information Technology at Alexandria University in partial fulfillment of the requirements for a Master's degree in Information Technology. The thesis proposes a lossy image compression approach using Stationary Wavelet Transform and Vector Quantization. It includes acknowledgments, an abstract, table of contents, list of figures/tables, and chapters on introduction, background/literature review, the proposed lossy compression method, experiments and results analysis, and conclusion.