In this paper, two-dimensional Discrete Wavelet Transform (2-D DWT) based image compression is presented with the help of developed Enhanced square root carry select adder (ESCSLA). The Enhanced Carry select adder is replacing the RCA and BEC unit to D-latch circuit. It provides better results than compared to the conventional adders. DWT and ESCSLA circuit is designed through Very Large Scale Integration (VLSI) System design environment. Low power consumption, less area and high speed are the main concerns in VLSI System design. Hence, our aim is to reduce the hardware complexity of ESCSLA and improve the performance of DWT in terms VLSI concerns. In our work, three levels of decomposition are made for image compression. With the help of pixel values of image and Enhanced square root carry select adder circuit, 2-D DWT image compression technique is implemented through Verilog HDL design. The performance of ESCSLA circuit is better than conventional Binary to Excess1 (BEC) based Square Root Carry Select Adder (SQRT CSLA) in terms of silicon area and power consumption. Hence, the performance of DWT also increased when incorporating EHRCA circuit into addition process of DWT computation.