In　this　paper　we　proposed　a　secure　image　watermarking　algorithm　for　digital　image　using　the　visual　cryptography　(VC)　and　discrete　fractional　Fourier　transform　(DFRFT).　We　use　the　visual　secret　sharing　scheme　to　construct　two　shares,　namely,　master　share　and　ownership　share.　Features　of　the　original　image　are　extracted　using　Non-Negative　Matrix　Factorization　(NMF),　and　are　used　to　generate　the　master　share.　Ownership　share　is　generated　with　the　help　of　secret　image　(watermark)　and　the　master　share,　using　VC　technique.　In　case　of　any　dispute,　the　master　shares　and　ownership　shares　can　be　stacked　together　to　give　the　copyright　image　verifying　the　ownership　about　the　host　image.　In　order　to　achieve　the　robustness　and　security,　the　properties　of　VC,　DFRFT　and　NMF　are　used　in　our　scheme.　The　experimental　results　show　that　the　proposed　scheme　is　strong　enough　to　resist　various　signal　processing　operations.