The binary phaseonly filter (BPOF) based digital image watermarking combined with a discrete wavelet transform (DWT) was proposed. Firstly, the DWT transform was applied to an image. Then, the discrete Fourier transform (DFT) was applied to the low frequency subband of the DWT transform. Next, the phase information of the DFT was binarized to obtain the BPOF, which would be taken as the watermark and embedded into the corresponding magnitude. Compared to applying the DFT transform to the whole image and embedding the BPOF watermark in the entire frequency range, or in the low frequency range, the watermark robustness in JPEG compression is improved significantly while maintaining the watermark imperceptibility and detection efficiency. This method may be used to demonstrate the authenticity and integrity of an image. The simulation experiments demonstrate the efficiency of this method.