The technique Digital Watermarking is one of the best method for copyright protection. Protection of digital multimedia content has become an important issue for content owners. Watermarking can be done by using least significant bit (LSB),),discrete wavelet transform(DWT),discrete cosine transform(DCT),discrete Fourier transform(DFT), singular value decomposition(SVD).In this paper the watermarking algorithm based on Discrete wavelet transform are used for embedding and extraction of watermark. In this paper the detail study of watermarking, its type, concept based on discrete wavelet transform are proposed. Firstly features of watermark than categories of digital watermark and watermark based on DWT and their algorithm with performance evaluation matric are proposed. This paper successfully explains the digital watermark technique based on DWT by analyzing various values of PSNR, SNR and MSE.