With the increasing researches in embedding watermarks in DWT domains, exploiting the HVS model while embedding have raised interests in the field. Schemes for embedding in low and/or high frequencies domains had been proposed in some literatures, but seldom of them take into account of the considerations of display visual resolution (dvr) as a factor. In this paper, we proposed a novel scheme which adapt the quantization modulation technique and employ the Watson's invisibility model as the quantization factor in modulation for governing the perceptual quality. Various cover images has been used for testing. All of the watermarks can be 100% detected without any attacks and under low pass filter attacks. Even for JPEG 50 quality compression, extraction rate can be higher than 99.5%. As the inadequate and/or insufficient of using PSNR to evaluate the perceptual quality of watermarked images, MSSIM will also be used for evaluation in our work. © 2008 IEEE.