Abstract: An image compression technique that incorporates Peano scan with a fractal-based coding scheme is described. The proposed approach is very simple and clear, and its implementation is easy, 1/10 compression rate is achieved. The reconstructed image retains original picture quality and has well psycho-visual effects. This scheme not only can be used in aerial photograph and remote sensing image processing, but also has wide application prospects in earth science, biology, medicine, military affairs and communication