This document discusses image compression using discrete wavelet transform (DWT) and principal component analysis (PCA). It first reviews several related works that use transforms like curvelet, wavelet and discrete cosine transform for image compression. It then describes preprocessing the input image using DWT to decompose it into sub-bands, and applying PCA on the high-frequency sub-bands to reduce dimensions and compress the image while preserving important boundaries. The algorithm is implemented and evaluated based on metrics like peak signal-to-noise ratio, standard deviation and entropy. Results show 95% accuracy in image identification from a database, though processing time increases significantly with database size.