In this paper, performing image steganography on frequency domain in stead of space domain is analyzed. Image steganography is a new data hiding scheme which protects the essential information embedded in an image. The object is to hide as many bits as possible while maintaining certain image quality (in terms of Peak Signal-to-Noise-Ratio, PSNR). By embedding the essential information in the high frequency parts of the DWT coefficients and keep the low frequency part unchanged, we can exploit the characteristic of DWT and protect the embedded information more securely since human eyes are much less sensitive to high frequency signals.