Abstract: A digital watermarking method based on lapped orthogonal transform(LOT) and singular value decomposition(SVD) is proposed.LOT can reduce blocking effects caused by other block-based transforms such as DCT.Sigular values represent inherent characteristics of the image and are therefore quite stable.By using a quantization scheme,the embedded watermark can be detected without the cover image and the watermark.Experiments show that the embedded watermark is transparent and robust agaist a number of attacks.