With the fast expansion of multimedia technologies, the compression of multimedia data has become an important aspect. Image compression is important for efficient storage and transmission of images. The limitation in bandwidth of wireless channels has made data compression a necessity. Wireless channels are bandwidth limited and due to this constraint of wireless channels, progressive image transmission has gained much popularity and acceptance. The Embedded Zerotree Wavelet algorithm (EZW) is based on progressive encoding, in which bits in the bit stream are generated in order of importance. The EZW algorithm, code all the frequency band of wavelet coefficients as the same importance without considering the amount of information in each frequency band. This paper presents an enhanced wavelet based approach to overcome the limitation of the Embedded Zerotree Wavelet (EZW) algorithm. This method divides the image into some sub-blocks.