Security is playing a very important and crucial role in the field of network communication system and Internet. Data is used in diverse areas such as medical, military, science, engineering, entertainment, education, and training .Data is not secure because of attackers and intruders. Data confidentiality using s-DES is a private key cryptography system that provides the security in communication system. Encryption is the process to safe confidential data to transmit over insecure channel. The sender encrypts the secret message using S-DES algorithm which uses a secret key that should be known to both the sender and receiver. To provide the greater security the message is hidden using the LSB steganography in the image and sending it to the receiver who recovers from the image and decrypt it and get the original message Matlab is used as a simulator to implement the techniques of encryption and steganography. Matlab provide highly computing environment and advanced in built function for image processing.