Picture compression & steganography are vital methods for security of information and management of data. The aim of this study to produce a high-quality picture by using two image compression methods: Discrete Wavelet Transform (DWT), and Discrete Cosine Transform (DCT), and comparing their performance across different image formats (jpg, png, bmp). Additionally, the least significant bit (LSB) image steganography method is applied for data embedding. Here, we show that DWT outperforms DCT in terms of compression ratio and maintains better image quality, with lower Mean Square Error (MSE) and higher Peak Signal-to-Noise Ratio (PSNR). The result of this study shows that among these picture formats, LSB steganogaphy produces the better quality stego images using PNG images. Overall, the results indicate that DWT is superior for picture compression, while LSB works effectively with PNG cover pictures. The contribution of this results to the development is more efficient and safe methods for image processing & information hiding.