In order to protect the copyright of the image, this paper proposes a kind of watermark algorithm in DWT domain based on fractal theory and HVS. Firstly, the original image is transformed via DWT and the wavelet coefficients are divided into isotropic wavelet trees, then the domain subtrees and range subtrees are constructed in isotropic wavelet trees. It will divide domain subtrees into embedded domain subtrees and non-embedded domain subtrees by fractal theory matching, then the watermark is added in the embedded domain subtrees. We only embed part of information of the image and use the HVS module to control the capacity of the embedded watermark, which maximizes the robustness when the watermark is not visible and achieves the blind watermark extraction.