In real time application of transmitting data through internet or web encryption plays a vital role. Data that is being transmitted will be encrypted in order to be protected from the hackers. When data is sent through internet it can be viewed by number of people. The data transmitted first moves to the local network and then to internet service provider, who will be able to view your message. After this the data travels through number of routers to reach the internet service provider of the recipient. During this process data can be accessed by numerous people. Hence, we need to encrypt the data or message that is being transmitted. Encryption can be done by several techniques and different algorithms. This project will embed three different techniques to increase the level of security provided to the data. Haar DWT and Average alpha blending are the techniques used along with that LSB encryption algorithm is used. In all existing techniques lift DWT was widely used where, it produces a negative co-efficient. Handling negative co-efficient will degrade the PSNR value of the restored image at receiver side. Hence, it is replaced by Haar DWT. Haar wavelet will be implemented on the input image which provides one level security and using LSB algorithm where output of Haar wavelet pixel values are altered by pixel values of cover image used. This step provides two level security. Average blending is done at the last level so that levels of security are increased again and also speed is increased area is minimized. In this project using all techniques mentioned above, security is increased and use of Haar wavelet will also increase PSNR value.