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Everyday millions of data is to be transmitted at distinct channels for various purposes and there will be chances of third person interruption in that transmission data. So, to solve the problem of third party interruption the digital watermarking is the suitable solution by whom we cover our host image with some watermarked image. Here define a novel algorithm for watermarking for gray images based on DCT and 2DWT. We further by using grey images concept than we apply red component on DCT and blue and green component on 2DWT for better result on hiding the data towards the watermarking images for better robustness. The experiment further results that the watermarking is robust to common signal processing concluding various results on compression, by adding furthermore noise and attacks for better quality of results.