Abstract: A novel wavelet coding scheme of color image based on Context modeling is presented.the three components of original color image are transformed into another three components.Then,these three components are processed separately:The discrete wavelet transformed coefficients are first selected by a threshold.The significant coefficients are then quantized with a uniform quantizer and then decomposed into two parts:the most significant bit and the residual bits for entropy encoding.Simple but effective Context modeling schemes are proposed for better squeezing of the redundancy lying in the significant map symbol stream determined by the threshold operation and the MSB symbol stream decomposed from the quantized significant coefficients.With these innovations,the proposed coding scheme is competitive with other best coding algorithms reported in the literature.