Abstract: Fractal methods open up great prospects for many image processing areas.In this paper fractal inage coding and fractal interpolation are studied at first,then an efficient image compression method combining fractal interpolation and fractal image coding is proposed.The shortcoming of the common fractal image compression methods is that it is time-consuming.The new method reduces compression time greatly.The compression result shows that the compression is as high as 76 to 1 while PSNR is 28.7dB.The high copmression is very useful for image communication.