Abstract-In this paper, an innovative joint-source channel coding scheme is presented. The proposed approach enables iterative soft decoding of arithmetic codes by means of a soft-in soft-out decoder based on suboptimal search and pruning of a binary tree. An error-resilient arithmetic coder with a forbidden symbol is used in order to improve the performance of the joint source/channel scheme. The performance in the case of transmission across the AWGN channel is evaluated in terms of word error probability and compared to a traditional separated approach. The interleaver gain, the convergence property of the system, and the optimal source/channel rate allocation are investigated. Finally, the practical relevance of the proposed joint decoding approach is demonstrated within the JPEG 2000 coding standard. In particular, an iterative channel and JPEG 2000 decoder is designed and tested in the case of image transmission across the AWGN channel.