In this research paper, we have done the implementation and analysis of true color image compression and decompression technique. The implemented paper divides the color image into RGB component then after applying three-level Discrete Wavelet Transform, RGB components are split into nine higher frequency sub-bands and one lower order sub-band. The lower frequency sub-band is compressed into T-Matrix using One Dimension Discrete Cosine Transform. At the same time, higher frequency sub-bands are compressed using scalar quantize and eliminate zero and store data algorithm are applied to remove zeros in sub-band matrixes. Last, the encoded mode adopted arithmetic encoding. This algorithm has use two level of quantization this show significance improve in performance of compression algorithm. The decompression process is reverse process of encoder. The decompression algorithm decoded high-frequency subbands using return zero matrix algorithm and recover low-frequency sub-bands and other sub-bands using applying inverse process. © Springer Nature Switzerland AG 2019.