This paper proposes an image watermarking method based on the fast discrete cosine transform (DCT) algorithm for implementation in digital signal processor. A digital watermark can be effectively embedded and efficiently extracted without the host image. The keys in watermarking process include four frequency coefficients in DCT, two random permutation vectors, and a quantization matrix for normalizing the watermark and the host image. The fast DCT algorithm has been shown to reduce the complexity of two-dimensional image transformation so that embedding/decoding an image watermark can be completed in real time within 0.33 seconds. The quality of both watermarked image and extracted (retrieved) watermark remains excellent. It is shown that the watermarking method is efficient in and robust to data cropping, transmission loss, and compression/decompression.