An apparatus and method for frame buffer compression. For example, one embodiment of a method comprises: identifying a wavelet function to compress an original frame buffer image; performing a wavelet transform on the original frame buffer image using the wavelet function; using a specified subset of wavelet coefficients of the wavelet function to construct an approximated image function; determining residuals comprising differences between the original frame buffer image and the approximated image function; and storing the residuals for subsequent use in recreating the original frame buffer image from the approximated image function.