Abstract: This paper presents a novel image watermarking technique using Kekre’s algorithm to generate hybrid wavelet transform DKT_DCT from Kekre transform and Discrete Cosine Transform. In the proposed technique, 256x256 hybrid transform is generated using 16x16 Kekre transform and 16x16 DCT whereas, 128x128 hybrid wavelet transform is generated using 32x32 Kekre transform and 4x4 DCT matrix. Generated DKT_DCT transform is applied to host and watermark in three different ways: column wise, row wise and full transform. Performances of these three ways of applying transform are compared against various image processing attacks namely image cropping, image compression, adding noise and image resizing attacks.