Wavelet compression technique is widely used to achieve high good compression factor. In this paper, certain experiments were performed to identify the importance and the sensitivity of this technique to various internal and external parameters. Compression factor and SNR are the main factors to be optimized here against many factors like; image type, division factor, subblock size. Changing these parameters has shown a significant change in the performance leading to verified steps on how to choose these parameters in order to optimize the performance to get better compression and quality