Abstract: In this paper, a structure matrix vector quantization algorithm based on wavelet transform is proposed. After the multiresolution pyramidal decomposition of wavelet transform, the similarity among the wavelet coefficients of subbands is obtained, and transmit the dividing information of the subband m to the subband m-1. After classifying vector quantization,the results are more compressed by structure matrix based on the structure specialty of the subbands Experiments show that the algorithm performs better than others in the aspects of high compression ratio and high image quantization.