[Show abstract][Hide abstract] ABSTRACT: It is well known that tile-boundary artifacts occur in wavelet-based lossy image coding. However, until now, their cause has not been understood well. In this paper, we show that boundary artifacts are an inescapable consequence of the usual methods used to choose tile size and the type of symmetric extension employed in a wavelet-based image decomposition system. This paper presents a novel method for reducing these tile-boundary artifacts. The method employs odd tile sizes (2<sup>N</sup>+1 samples) rather than the conventional even tile sizes (2<sup>N</sup> samples). It is shown that, for the same bit rate, an image compressed using an odd tile length low-pass first (OTLPF) convention has significantly less boundary artifacts than an image compressed using even tile sizes. The OTLPF convention can also be incorporated into the JPEG 2000 image compression algorithm using extensions defined in Part 2 of this standard.