Digital Image Watermarking is a process of embedding a known data into an Image. Several techniques are developed to embed a watermark into a known cover image. Digital image watermarking provides security like copyright protection, ownership, and authentication to the images. In this paper, a new robust image watermarking and the watermark extraction algorithm is proposed using DWT-FWHT transformation. The watermarking algorithm further calculates the peak-signal to noise ratio(PSNR) values on the selected images and the extraction process involves the process of correlating the extracted watermark with the original watermark for various sub-bands of discrete wavelet transformation. The digital image watermarking algorithms using discrete wavelet transformation have been identified to be more prevalent as compared to those with the other watermarking algorithms. This is due to the wavelets high spatial localization, frequency spread, and multi-resolution characteristic features which are much similar to that of the theoretical models of the human visual system.