. Fractal coding is a new method of image compression; however, the baseline fractal image coding is time consuming due To the best matching search between range blocks and numerous Domain blocks. In order to improve the encoding speed, a fast Fractal coding algorithm was proposed based on image dividing. An image was first divided into small regions before encoding and then each region was encoded quickly because the time of Matching search has been reduced in a small image region. Such Algorithm is also convenient for programming. In order to make the edge feature lossless we use lossless SPIHT coding to encode the high frequency information and the proposed fast fractal algorithm to code the low frequency information