Watermarking in the Joint Photographic Experts Group (JPEG)2000 coding pipeline is inves- tigated in this paper. A joint quantization and water- marking method based on trellis-coded quantization (TCQ) is proposed to reliably embed data during the quantization stage of the JPEG2000 part 2 codec. The central contribution of this work is the use of a single quantization module to jointly perform quantization and watermark embedding at the same time. The TCQ- based watermarking technique allows embedding the watermark in the detail sub-bands of one or more resolution levels except the first one. Watermark re- covery is performed after image decompression. The performance of this joint scheme in terms of image quality and robustness against common image attacks was estimated on real images.