The Mathematical Foundation of Fractal Image Compression We will discuss the search for more efficient methods of image compression. The objective in image compression is to efficiently produce graphics files stored with the least amount of data without compromising image quality. Efficient data storage is a priority for any large database of images. Intelligent image storage is imperative for medical applications such as digital X-Ray, CT, MR, mammography, PET, ultrasound, and angiography. In addition, the FBI fingerprint database, other forensic imaging applications, digital aerial photos, and high-resolution satellite systems all utilize image compression. A recent approach to image compression, pioneered by Michael Barnsley, is to use the similarities on different scales throughout an image to assist in compression. Fractal Image Compression enables an incredible amount of data to be stored in highly compressed data files. We will explore the mathematical theory which supports fractal image compression. One of the most important foundations for fractal image compression is the concept of Iterated Function Systems (IFS). Through IFS we are able to systematically reproduce fractals which occur in nature. With the theory that will be presented, we will explore the development of an IFS and how one can apply IFS to obtain fractal image compression. Future goals of this project would be to continue research to develop a more efficient fractal image compression method that can be applied to images used in a variety of industries. Another goal would be to combine other forms of image compression, such as wavelet compression methods, with fractal compression to further improve the compression rates.