This paper discusses a method for hiding secret data within images using steganography techniques, specifically through least significant bit (LSB) and discrete wavelet transform (DWT) on an FPGA Spartan III platform. The research demonstrates how to effectively embed and retrieve hidden messages from 8-bit grayscale images while maintaining image quality, evaluated through mean squared error (MSE) and peak signal-to-noise ratio (PSNR). The findings suggest that the DWT method outperforms LSB in terms of image quality, emphasizing the growing importance of steganography in data security.