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Steganography, Huffman Encoding, Peak Signal To Noise Ratio, Residual Coding, Distortion, Redundancy.

Steganography is an art of hiding secret information on a cover medium through imperceptible methodology. The three pillars on which a steganography algorithm should be erected are: Embedding capacity, Imperceptibility and Robustness. It is fortunate that all these goals are interdependent on one another. The state of art is finding an optimum solution that keep up all the steganography goals. It is believed that there is no productivity if the size of cover medium gets extended to meet in housing the secret data on it. This happens due to lack in refinement of embedding algorithm and failing in analyzing the data structure of secret data. In this paper, an attempt has made to improve embedding capacity and bring very less distortion to the cover medium by analyzing the data structure of the payload. A residual coding is carried on the pay load before it is submitted to Huffman encoding which is a lossless compression technique. As a result, the representation of payload had shrink. Further, the variable bit encoding (Huffman) do a lossless compression and finally the payload get housed on the cover medium. This ended with high embedding capacity and less imperceptibility. Peak signal to noise ratio confirms that the residual coding had given improvised results than few existing embedding algorithm.