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Cellular automata are discrete dynamical systems, which provide the basis for the synthesis of complex emergent behavior. This paper proposes a new algorithm of digital watermarking based on cellular automata transform (CAT). The idea of two-dimensional CAT is introduced into the algorithm. After the original image is disassembled with 2D CAT, the watermark information is embedded into the Middle-frequency of the carrier picture. Cellular automata have a huge number of combinations, such asdoi:10.6109/ijice.2011.9.6.689 fatcat:cdomnoruxnblbcndyb2gqsxkyu