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With the rapid growth of Internet technology, image watermarking techniques have been widely studied since the need for copyright protection. This paper presents a scheme of digital image watermarking using iterative blending based on discrete wavelet transform (DWT). The method is based on decomposing host image and watermarking image by DWT, and then embedding the significant coefficients of watermarking image into the same part of host image using iterative blending. The watermarking won't be visible and can be extracted later. Experimental results show that the proposed watermarking technique is robust against several attacks, such as cutting, median filtering, rotation and JPEG compressing.