The performance of the wavelets within the field of image process is standard. Multiwavelets is the next step in riffle theory and it takes the performance of wavelets to the next level. In this work the performance of the Integer Multiwavelet transform (IMWT) for lossy compression has been studied. The Proposed IMWT shows sensible performance in lossy reconstruction of the images than that of Existing lossy reconstruction. This work utilizes the performance of the Proposed IMWT for lossy compression of images with encoding techniques like Magnitude set coding and Run Length Encoding. The transform coefficients are unit coded by means of Magnitude set coding and run length coding techniques which in turn results with low bits. The transform coefficient matrix is coded on not taking under consideration of the sign values using the Magnitude Set—Variable Length Integer illustration. The sign data of the coefficients is coded as bit plane with zero thresholds. This Bit plane may be used as it is or coded to scale back the bits per pixels. The Simulation was exhausted using Matlab. © 2015, Springer Science+Business Media New York.