Hardware implementation of JPEG 2000 compression/decompression standard, applicable to the real-time image sequences, is discussed in this paper. The general system-level design along with its details is presented. In this paper, for clarity and ease of understanding, implementation of lossless and lossy compressions is treated independently. Depending on the application, usually one implementation is preferred over the other and in general there is no need to include both methods on the same hardware platform. For multi-level decomposition, it is assumed that the LL component of the previous stage, i.e., scale-coefficient, is fed back to the same hardware for further decomposition.