The natural preserve transform (NPT) has been presented as a tool for fuzzy logic watermarking. This paper describes a new image watermarking technique based on naturalness preserving transform (NPT). The proposed watermarking scheme uses NPT to encode a gray scale watermarking logo image or text, into a host image at any location. This paper presents efficient non-blind and quasi-blind watermark extraction techniques. In the quasi blind case, the extraction algorithm requires only very few information about the original image that is already conveyed by the watermarked image. Moreover, the proposed scheme does not introduce visual quality degradation into the host image. The performance and robustness of the proposed technique are tested by applying common image-processing operations such as cropping, noise degradation, and image compression. A quantitative measure is proposed to objectify performance; under this measure, the proposed technique outperforms most of the recent techniques in most cases. We also implemented the proposed technique on a hardware platform, digital signal processor (DSK 6713). Simulation and implementation results are illustrated to show the effectiveness of the proposed technique.