Abstract-Watermarking is an effective means of hiding data, thereby protecting the data from unauthorized or unwanted viewing. Watermarks have been proposed previously as a way for protecting the data. This digital signature could discourage copyright violation, and may help determine the authenticity and ownership of an image. In this paper, audio watermarking is done with the help of Discrete Fourier Transform (DFT). To enhance the security of the watermark, pseudo noise (PN) based encryption is used.