Generally, in watermarking scheme the size of the watermark is very small when compare to host image. On the contrary, this is an attempt in which a new watermarking scheme is presented where the size of host image is very small when compare with watermark image. The core idea of the proposed scheme is to scale up the size of host image equal to the size of watermark via over-sampling and then decompose it using stationary wavelet transform. A gray scale watermark is embedded in the low frequency sub-band at the finest level using singular value decomposition. To prevent ambiguity and enhance the security, a binary watermark is also embedded in loss-less manner. Finally, a reliable watermark extraction scheme is developed for extracting both the watermarks. The experimental results demonstrate better visual imperceptibility and resiliency of the proposed scheme against intentional or un-intentional variety of attacks. © 2011 Springer Science+Business Media, LLC.