Abstract: A fractal image coding combined with wavelet decomposition is presented.Jacquin fractal image coding is very simple.But when it is encoding,it takes a long time and sample method of Domain has its shortcoming.In order to solve this question,a new fractal image coding based on discrete wavelet transformation is introduced.The algorithm is:First,the image is decomposed into different channels by discrete wavelet transformation.Second,a domain block and an affine mapping are searched for each part of image block respectively within low frequency of wavelet coefficients.Simulation shows that the quality of the image is improved greatly.