this paper introduces the design and implementation of JPEG image compression based on the high speed DSP TMS320VC5416 available from Texas Instruments. Especially, the realization and optimization of DCT transform is discussed and the image Lena is compressed with different way. Experiments show that the reconstructed images have PSNR above 34dB . JPEG algorithm is a digital image compression algorithm with high compression ratio, little distortion characteristics, and has been identified as international standards. This standard has been widely used in digital cameras, surveillance systems, mobile phones, video phones, and many other aspects. It is important to research and realize a real-time image compress system Using JPEG. DSP is used in real-time processing and portable applications with special hardware structure. DSP with high processing speed and excellent operation performance is particularly adapted to image processing. This article introduces DSP-based implementation of JPEG.