Since when human beings started dialogue with each others establishing secret communication has been a need. This necessity becomes important when the exchanged information has considerable value. The increasing expansion of internet as a means of communication has amplified the need for establishment of secure information channels. Even though the use of cryptography can be useful in creating a secure link but the presence of such a coded communiqué may cause difficulties in certain applications. In addition to cryptographic methods, there is a need for schemes where the existence of a communication link is kept as a secret. The goal of steganography is creating such a link. Steganography is the science and art of invisible communication. On the other hand, steganalysis is referred to the collection of methods devised for finding the presence of secret messages in communications. In this thesis a new steganographic method called AH-LSB-M is proposed which is the improved version of LSB matching algorithm. The proposed method has higher capacity and better security than the ltr"