In this paper, a new watermark embedding and detecting method for blind and robust digital watermarking of images are presented. A binary image is utilized as a watermark which is embedded using the Discrete Wavelet Transform (DWT) and the Fractional Fourier Transform (FrFT). We use DWT domain to embed the watermark into the original image in such a way that it is imperceptible by the human visual system. The FrFT orders are used as the encryption keys that allow the watermarking method to be more robust against various attacks. It is also shown that the watermark can be extracted from the watermarked image without needing the knowledge of the original image. © 2011 Chamber of Turkish Electric.