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The system is implemented use in Spartan-3 EDK kit successfully with the use of Xilinx platform studio (XPS). The various performance evaluation parameters like MSE, PSNR and NCC are used. In the proposed watermarking algorithm values of PSNR and NCC is 48 and 1 respectively after downloading hardware and software architecture bit streams into Spartan-3 FPGA kit. Power required for our system is very less i.e.1.14V and total time required for processing is in nanoseconds i.e.16ns which is compared with available research work. Hence our proposed system is of low cost and less time consumption. To improve the robustness and imperceptibility of proposed system software simulation of DWT-DCT combined algorithm is implemented in MATLAB. In this software simulation process PSNR maximum value obtained is 76.139 which produce the system to be more robust. On this algorithm we have apply different attacks to check the performance of the system. For Median filter the value of NCC is nearly equal to 1.