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An image coding algorithm based on human visual system is proposed. SPIHT algorithm is analyzed and Enhanced in this paper. According to the different sensitivity of human visual system on edge, smooth and texture regions of the image, different perceptual weights are given to the corresponding wavelet coefficients for the image information in these three different areas. The experiment results show that the algorithm has better subjective quality of the reconstitution image and higher peak signal-to-noise ratio (PSNR).