A new texture segmentation-based image coding technique which performs segmentation based on roughness of textural regions and properties of the human visual system (HVS) is presented for multime-dia teleconference. The segmentation is accomplished by thresholding the fractal dimension so that textural regions are classified into three texture classes; perceived constant intensity, smooth texture, and rough texture. An image coding system with high compression and good image quality is achieved by developing an efficient coding technique for each segment boundary and each texture class. We compare the coding efficiency of this technique with that of a well established technique (discrete cosine transform (DCT) image coding).