Wavelets are mathematical tools for hierarchically decomposing functions. Wavelet Transform has
been proved to be a very useful tool for image processing in recent years. It allows a function which may be
described in terms of a coarse overall shape, plus details that range from broad to narrow. The most distinctive
feature of Haar Transform lies in the fact that it lends itself easily to simple manual calculations. Modified Fast
Haar Wavelet Transform (MFHWT), is one of the algorithms which can reduce the calculation work in Haar
Transform (HT) and Fast Haar Transform (FHT). The present paper attempts to describe the algorithm for image
compression using MFHWT and shows better results than those obtained by using any other method on an
average. It includes a number of examples of different images to validate the utility and significance of
algorithm’s performance.