Digital image watermarking is the process for data hiding and provides extension of maximum security from unauthorized persons. This paper proposed an imperceptible transform domain based digital image watermarking scheme with YUV color space. Initially the RGB (Red, Green & Blue) cover image is converted into YUV model then performs Hadamard transform (HT) on Y (Luminance) component to obtain coefficient values of those images. The second step is perform embedding process in between Y coefficient values and watermark image with help of scaling factor (α) to obtain new Y components. Last step is to obtain watermarked image after applying the inverse Hadamard transform and also conversion of YUV to RGB. Finally to extract the watermark image without any distortions at receiver side after performing reverse embedding process . The experiment results provide better values than the existing ones using quality factors like Peak Signal to Noise Ratio (PSNR), Mean square error (MSE), Similarity measures (SSIM) and normalized cross correlation (NCC).