Abstract: Being aimed at the deficiency of the color image watermarking algorithm, this paper proposes a digital watermarking embedding algorithm based on Discrete Wavelet Transform (DWT) for color image, by using the larger information characteristic of color image. The original color image is transformed into the YIQ color space, and the watermark was embedded in both Y component and Q component. The algorithm proposed in this paper can contain more embedding intensity and be invisible. The experimental results show that the watermarks are robust against JPEG, filter, crop procession and noise etc.