The paper presents an efficient image compression technique using JPEG2000 with an adaptive threshold, aimed at enhancing visual quality while achieving a high compression ratio. The proposed method incorporates discrete wavelet transform (DWT) and embedded block coding with optimized truncation, yielding superior results compared to existing compression techniques like JPEG. Experimental analysis shows that this approach provides cleaner and smoother images while retaining significant detail, as evaluated by peak signal-to-noise ratio (PSNR).