Medical images are tough to compress. As fractal approach provides a lossy image compression and gives higher compression, it is used to compress medical images. In this paper, wavelet-based fractal quad tree combined with Huffman coding is implemented in MATLAB to compress medical images with different modalities as MRI and X-ray. The parameters as encoding time and compression ratio are calculated for analysis of results of the proposed method for MRI as well as X-ray images. The Haar wavelet is used for implementation which is done in MATLAB. The parameters such as compression ratio and encoding time are calculated for each of three levels of wavelet. The parameters of the proposed method are compared with parameters of the existing method. It shows that higher the level of the wavelet transform, higher the compression achieved.