Presents a new algorithm that utilizes mathematical morphology for pyramidal coding of color images. The authors obtain lossy color image compression by using block truncation coding at the pyramid levels to attain reduced data rates. The pyramid approach is attractive due to low computational complexity, simple parallel implementation, and the ability to produce acceptable color images at moderate data rates. In many applications, the progressive transmission capability of the algorithm is very useful. The authors show experimental results for color images at data rates of 1.89 bits/pixel.