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Abstract: Many secret sharing schemes for digital images have been developed in recent decades. Traditional schemes typically must deal with the problem of computational complexity, and other visual secret sharing schemes come with a higher transmission cost and storage cost; that is, each shadow size is m times as big as the original secret image. The new secret sharing scheme for grayscale images proposed in this paper is based a combination of acceptable image quality using block truncation coding (BTC), high compression ratio discrete wavelet transform (DWT) and good subjective performance of the vector quantization (VQ) technique. Experimental results confirm that our proposed scheme not only generates a high quality reconstructed original image but also generates small, random-like grayscale shadows. [Copyright &y& Elsevier]