In this paper, a new watermarking scheme based on redundant fractional wavelet transform is presented. First, the definition and implementation of redundant fractional wavelet transform is proposed followed by its use in watermark embedding. For embedding, the gray-scale logo watermark is used and is embedded in the middle singular values of the redundant fractional wavelet domain. In order to enhance the security, a binary watermark is also embedded in the host image in lossless manner based on automatic thresholding. Finally, a reliable extraction process is developed for the extraction of both the watermarks from the possibly distorted image. The feasibility and robustness of the proposed technique is carried out by the security and attack analysis on different images. © 2013.