In this paper, pyramidal VQ image coding by DCT classifier based on HVS is studied. The proposed DCT classifier based on HVS is that the transform subblocks of the image are mlultiplied by MTF which is a sort of band pass filter and sorted by the magnitude of their ac energy levels and classifeid into three classes such as low, middle and high variance class by the threshold and then edges are detected in comparison of the energy sum of ac transform coefficients corresponding to the different edge directions.