In this paper, we proposed an improved texture compression method for graphics hardware. We first give a detail introduction for the texture compression methods which are popular now. Then, an MIPMap-based texture compression method is proposed that is hybrid compression scheme. For smooth area, we can only use 2Bytes to represent the 4*4 pixels block by bilinear interpolation. Otherwise, we will use iPACKMAN algorithm to deal with the noise areas. Actually, this method is feasible to be implemented by hardware since it is very simple. Experimental results show that our method can achieve high compress ratio and high image quality.