Everything on Internet Protocol not just the motivation but increased population leads to the huge requirement of communication bandwidth and resources. Large database is almost at every premise like software farm, banking sector, Internet Servers etc. so it ultimate result into either increase in the resources required or use the available resources efficiently. Out of two ways, second one is more suitable and tried by many. Huffman Coding is the most used source coding technique till the date. Arithmetic coding is emerging and more powerful in the compression and most suitable with dynamic source symbol probability model, and that''s why it is recommended in JPEG2000 instead of Huffman but because of complexity it is quite sturdy to implement it in the hardware. Arithmetic coding has potential to bring huge research in the source coding technology. The book should help in basic theory and practical implementation understanding of Arithmetic Coding. Latest implementation of arithmetic coding is explained for reconfigurable hardware implementation. It is written in view of new bee to the research scholars.