Recently, image compression and image encryption methods are very crucial in terms of transmission and security of images. Therefore, image compression and encryption were implemented by using JPEG standard and Tiny Encryption Algorithm. In the encryption part, frequency of image pixels took into consideration. Encryption was applied pixels which have lower frequencies so output images of system was encrypted successfully. TEA was implemented on FPGA by using Verilog Hardware Description Language. Other parts of system were implemented on MATLAB. At the end of this paper, some results of encrypted images were given.