In rapid development multimedia the Images are awesome use full, image coding is the key and most prevalent in mass communication and storage system. This paper represents image compression based on Luminance and Chrominance using Binary Wavelet Transform 1 and Raster Line technique is proposed. This 2-5 techniques. In a distributed environment large image files remain a major bottleneck within systems. Compression is an important component of the solutions available for creating file sizes of manageable and transmittable dimensions. Increasing the bandwidth is another method, but the cost sometimes makes this a less attractive solution. Platform portability and performance are important in the selection of the compression/decompression technique to be employed. Compression solutions today are more portable due to the change from proprietary high end solutions to accepted and implemented international standards. In most of the applications the exact restoration of stored image is not mandatory. This fact can help to make the storage more effective, and in this way we get the lossy compression methods. JPEG is evolving as the industry standard technique for the compression of continuous tone images. But this has a limitation for the color images that the application where the color integrity is important like correcting chromatic aberration is not suitable for JPEG data. In this paper a lossy image compression is proposed by considering the chrominance aberration correction. II.