This paper describes a new image watermarking technique based on the Natural Preserving Transform (NPT). The proposed watermarking scheme uses NPT to encode a gray scale watermarking logo image or text, into a host image at any location. NPT brings a unique feature which is uniformly distributing the logo across the host image in an imperceptible manner. The contribution of this paper lies is presenting two efficient nonblind and quasiblind watermark extraction techniques. In the quasiblind case, the extraction algorithm requires little information about the original image that is already conveyed by the watermarked image. Moreover, the proposed scheme does not introduce visual quality degradation into the host image while still being able to extract a logo with a relatively large amount of data. The performance and robustness of the proposed technique are tested by applying common image-processing operations such as cropping, noise degradation, and compression. A quantitative measure is proposed to objectify performance; under this measure, the proposed technique outperforms most of the recent techniques in most cases. We also implemented the proposed technique on a hardware platform, digital signal processor (DSK 6713). Results are illustrated to show the effectiveness of the proposed technique, in different noisy environments.