Steganography is a process of hiding secret information"s like image, video, audio, and text message in a carrier"s like image, video, and audio. Proposed method uses the secret information as a text message which is embedded in a color image. The existing methods hide the information using constant bit length in integer wavelet coefficients. This paper uses variable bit length based on integer wavelet coefficients to hide the data in a particular positions using secret key by LSB substitution method. Hence this algorithm increases the embedding capacity of the text message and obtained stego image is imperceptible for human vision. This technique embeds binary bit stream of secret text message into the 8 bit color image. The embedded confidential information can be extracted from stego image without the knowledge of original image by considering the same secret key. On average of 2.50 bits can be embedded in each wavelet coefficient of the input color image. Hence this method gives better results in both embedding capacity and PSNR than the existing methods.

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