-This paper proposes a novel watermarking method to discover the tampers and localize it in digital image. The image which is to be used to generate a watermark is first wavelet decomposed and the edge feature from the sub bands of high frequency coefficients are retrieved to generate a watermark (Edge Feature Image) and which is to be embed on the cover image. Before embedding the watermark, the pixels of cover image are disordered through the Arnold Transform and this helps to upgrade the security of the watermark. The embedding of generated edge feature image is done only on the Least Significant Bit (LSB) of the cover image. The invisibleness and robustness of the proposed method is computed using Peak-Signal to Noise Ratio (PSNR) and Normalized Correlation (NC) and it proves that the proposed method delivers good results and the proposed method also detects and localizes the tampers efficiently. The invisibleness of proposed method is compared with the existing method and it proves that the proposed method is better.