The high throughput and less internal memory requirement are two key issues of integrating the JPEG2000 encoding system. For this bottleneck of integration, a QCB (quad code block)-based DWT method is proposed to achieve more efficient parallelism in the JPEG2000 coprocessor. Based on the QCB-based DWT engine, the code blocks can be completely generated after every fixed time slice, recursively. Thus, the overall JPEG2000 encoding system arrives higher parallelism between DWT and EBCOT processors and thus preserves the high throughput, as DWT does. By changing the output timing of the DWT process and parallelizing with EBCOT, the internal tile memory size can be reduced by a factor of 4. Moreover, with smoother encoding flow of overall encoding system, the memory access cycles between the internal tile memory and code block memory also decreases.