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A high throughput and memory efficient EBCOT (embedded block coding with optimised truncation) architecture for JPEG2000 in a digital camera system is proposed. According to the proposed memory efficient algorithm, three coding state variables (γp[n], σp[n], and πp[n]) can be calculated on the fly to eliminate the memory requirement for these three variable. Moreover, three coding passes and four samples within the stripe-column are also performed concurrently by the proposed stripe-column-based pass-parallel operations. Experimental results show that the proposed architecture has 4 times greater throughput than other architectures, and the memory size of the proposed architecture is smaller than other existing architectures.