The invention relates to an orthogonal transformation used in image and video compression. Wherein, it first divides the image into 8*8 blocks as M, then uses 8*8 orthogonal transformation matrix D to process two-dimension transformation on each image block M, to obtain the transformation factor matrix N, then quantizes and codes each factor of N, to complete the image and video compression. The invention is based on orthogonal wavelet theory at octonary, to design one new 8*8 orthogonal transformation matrix, to compress image and video, to obtain better compression effect than the discrete cosine transformation, and improve the economic property and efficiency on the softwater and integrated circuit.