There has been a great progress in the field of graphics processors. Since, there is no rise in the speed of the normal CPU processors; Designers are coming up with multi-core, parallel processors. Because of their popularity in parallel processing, GPUs are becoming more and more attractive for many applications. With the increasing demand in utilizing GPUs, there is a great need to develop operating systems that handle the GPU to full capacity. GPUs offer a very efficient environment for many image processing applications. This thesis explores the processing power of GPUs for digital image compression using Discrete cosine transform.