This paper proposes an efficient, lossless image coding method using Hadamard transformation blocksize of 8 × 8. Hadamard transformation coefficients, when seen as bit patterns, are positively correlated with each other. This is because each element of the transformation matrix is either plus or minus if the normalization factor is ignored. Utilizing bit pattern relationships, the proposed method achieves compression efficiency comparable to that of the JPEG lossless compression method. In addition, the proposed method can be programmed in progressive coding which results in lossless by transmitting transformation coefficients sequentially from low frequencies to high frequencies. This property, which cannot be attained by the JPEG lossless compression method, is very useful in a variety of applications. © 1997 Scripta Technica, Inc. Electron Comm Jpn Pt 3, 80(6): 1–10, 1997