The goal of this project is to implement a digital image encoder and decoder using a Fractal Block Coding compression algorithm for grayscale images, and to compare its performance to currendy popular algorithms such as JPEG. The algorithm used here is based on the published papers [1] - [3] ofA E. Jacquin, and in part, a paper [4] by B. Ramamurthi and A. Gersho. As stated in the project proposal, this algorithm has been simplified to enable the timely completion of the project