The development of the higher quality and cheaper image acquisition devices has produced steady increases in both resolution and image size, and a greater consequent for the design of efficient compression techniques . Although the storage capacity and transfer bandwidth has grown accordingly in past years, many applications still require compression. Uncompressed multimedia (graphics, video and audio) data requires storage capacity and transmission bandwidth. Despite the frequent progress in mass-storage density, processor speeds, and the performance of digital communication system , demands for data storage capacity and data transfer bandwidth. The amount of data related with visual information is so large that its storage would requires more storage capacity. Storage and/or transmission of such data require large capacity and/or bandwidth, which could be very expensive. In this research work we present a technique which is a combination of DWT technique and enhanced by Fuzzy logic function. The aim is to give a better compression ratio along with increasing the visual perception quality of the image. Fuzzy logic Technique have been used in various areas involving clustering, data aggregation pattern deduction etc. We are using fuzzy logic in this technique to improve the quality of the compressed image resulted from DWT image compression technique.