Image steganography is the art of hiding information into a cover image. Steganography gained importance in the past few years due to the increasing need for providing secrecy in an open environment like the internet. The Least Significant Bit (LSB) substitution is the most commonly used spatial domain technique. In LSB substitution technique the least significant bit of each pixel of the cover is replaced by the secret message bits. In transform domain technique, the transform is applied on cover image and the secrete message bits are hidden inside the coefficients of the transformed cover image. Image steganography based on DWT (Discrete Wavelet Transform), is used to transform original image (cover image) from spatial domain to frequency domain. Two dimensional Discrete Wavelet Transform (2D DWT) is performed on a cover image of size performed on the secret messages before embedding. Then each bit of secret message is embedded using LSBMR algorithm in the selected frequency coefficients from Discrete Wavelet Transform. The experimental results show that the algorithm has a high capacity and a good invisibility. Moreover PSNR of cover image with stego-image shows the better results in comparison with other existing steganography approaches. Furthermore, satisfactory security is maintained since the secret message cannot be extracted without knowing rules.