Abstract: Multicarrier modulation, and especially OFDM, (Orthogonal Frequency Division Multiplexing) is one of the remising candidates that uses a set of subcarriers in order to broadcast the information symbols in parallel through the communication channel. It permits the communication system to broadcast the data at a lower rate on plurality of subcarriers and the throughput of multicarrier system remains as single carrier system. Here we are employing OFDM with DCT (Discrete Cosine Transform) for our image processing system. DCT is a Fourier-related transform resembles discrete Fourier transform (DFT), but deals only with real numbers. In this research, we have done performance assessment for the given system based on BER (Bit Error Rate), MSE (Mean Squared Error), & PSNR (Peak Signal to Noise ratio) under parametric variation i.e. Compression level, Channel used, Modulation method used. Given system has been tested for Rayleigh and fading channel under parametric variation.