Abstract-We undertake a study of the performance difference of the discrete cosine transform (DCT) and the wavelet transform for both image and video coding, while comparing other aspects of the coding system on an equal footing based on the state-of-theart coding techniques. Our studies reveal that, for still images, the wavelet transform outperforms the DCT typically by the order of about 1 dB in peak signal-to-noise ratio. For video coding, the advantage of wavelet schemes is less obvious. We believe that the image and video compression algorithm should be addressed from the overall system viewpoint: quantization, entropy coding, and the complex interplay among elements of the coding system are more important than spending all the efforts on optimizing the transform.Index Terms-Discrete cosine transform (DCT), image coding, video coding, wavelet transform.