In this paper a new non-blind luminance-based color image watermarking technique is proposed. The original 512×512 color host image is divided into 8×8 blocks, and each block is converted to YCbCr color space. A 32×32 monochrome image is used as a watermark and embedded in the selected blocks of the original image. The selected blocks must have log-average luminance that is closer to the log-average luminance of the image. DCT transform is applied to the Y component of each selected block. Each four values of the watermark image are embedded into each selected block of the host image. The watermark values are embedded in the first four AC coefficients leaving the DC value unchanged. The watermark is extracted from the watermarked image using the same selected blocks and DCT coefficients that have been used in the embedding process. This approach is tested against variety of attacks and filters: such as, highpass, lowpass, Gaussian, median, salt and peppers, and JPEG compression. The proposed approach shows a great ability to preserve the watermark against these attacks.