A Study of Image Compression Algorithm using DCT This paper describes the system that implement a JPEG(Joint Photographic Experts Group) algorithm based on DCT(Discrete Cosine Transform) uslng CCD kameva, Image Grabber, and IBM PC. After cosine transforms the acquisited image, this algorithm quantize and entropy encode the coefficients by JPEG code table. The coefficients are reconstructed by the Huffman decoding, dequantized procedure, and Inverse cosine transform. The results obtained from the impleulented system are as follows. (1) For effcient storage and easy implementation, this system save Image as a PCX formal (2) Thls system get 7:1 compression ratio(3.8 RMSE value) without large distortion. (3) With a low pass filtering, thls system eliminate high frequency components and get 20% enhanced compression ratio. (4) Thls system enhance the reconstructed Image using histogram modeling.