Abstract--For telecommunication systems, various compression and encryption techniques are proposed to satisfy a fast and secure transmission. However these two techniques have been studied separately. In this paper we propose a method combining encryption and compression based on Independent Component Analysis (ICA) and Discrete Cosine Transform (DCT). For encryption, target images are covered with an insignificant image to hide them and their mixtures to be transmitted are obtained. The receiver reconstructs the original images applying some ICA algorithm to the mixed images. In compression process, using DCT and simple low pass filter, the size of transmission can be reduced. Throughout several computer simulations, the performance of the proposed method is confirmed.