In today's world, there are a number of cryptographic and steganographic techniques used in order to have secured data transfer between a sender and a receiver. In this paper we present a new hybrid approach that integrates the merits of cryptography and Image steganography based on multi resolution wavelet domain. First, the original message is encrypted using modified blowfish algorithm and the resultant cipher text is embedded into a cover image. After that the Steg image is decomposed into approximation and detailed image using discrete wavelet transform. The resultant reduced image is transmitted to the receiver and the reverse process is done in order to get back the original plain text. Our experimental results show that our system is unique in its design as well as it is suspicion less.