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This book comes under the scope of INFORMATION HIDING. The objective of this book is to provide a secret and secured communication between folks & organizations. In this book we propose a new Steganography method which are named 'Dual Stage Steganography' based on image layers. This book intends to give an overview of Steganography, its uses and techniques.we select BMP (bitmap file) that provide loss less file compression. It also attempts to identify the requirement of a good Steganography algorithm and briefly reflects on which Steganography techniques are more suitable for which applications. In this project we try to enhance the capability of the existing technique by introducing the Dual Stage mechanism.