With the rapid development of computer and network technology, digital products, especially color digital images, can be popularized on the Internet, but because of their easy access and large-scale copying characteristics, their copyright protection has become increasingly difficult, and piracy and infringement and other issues are becoming more and more serious. Therefore, watermarking technology has increasingly attracted people's attention. Whether it is using digital or color images as host graphics or watermarking materials, it has become one of the hottest watermarking technologies. This article intends to explore the method of embedding and extracting the color image digital watermark using quaternion Fourier transform, and theoretically analyzes the quaternion representation, quaternion Fourier transformation, and logarithmic polar coordinate transformation of color images. And select the middle and low frequency area of the final real part of the quaternion Fourier transform as the embedding area, and carry out the method and process of watermark embedding and extraction. The simulation results show that, in the most typical attack form, the above-mentioned dynamic watermark embedding and extraction algorithm can not only effectively combat filtering attacks and noise intrusion, but also has absolute advantages in combating shear damage.