Advances in wavelet transforms and quantization methods have produced algorithms capable of surpassing the existing image compression standards like the Joint Photographic Experts Group (JPEG) algorithm. For best performance in image compression, wavelet transforms require filters that combine a number of desirable properties, such as orthogonality and symmetry. However, the design possibilities for wavelets are limited because they cannot simultaneously possess all of the desirable properties. The relatively new field of multiwavelets shows promise in obviating some of the limitations of wavelets. Multiwavelets offer more design options and are able to combine several desirable transform features. The few previously published results of multiwavelet-based image compression have mostly fallen short of the performance enjoyed by the current wavelet algorithms. This paper presents new multiwavelet transform and quantization methods and introduces multiwavelet packets. Extensive experimental results demonstrate that our techniques exhibit performance equal to, or in several cases superior to, the current wavelet filters.