The research on the Image Compression technique is mainly focused on reducing the size of the image data, leading to a reduction in cost associated with storage and transmission of images. Block Truncation Coding is one of the lossy image compression techniques. The proposed method is a BTC based technique for enhancing the quality of the image and reduce the size to improve the coding efficiency. The adaptive and interpolative scheme based on Absolute Moment Block Truncation Coding (AMBTC) is an improved form of BTC. In the proposed method, the blocks are considered into Shade, Medium, and Edge Blocks. The bit planes generated are omitted that results in enhanced coding efficiency. The Medium and Edge blocks ordered BTC used to increase the quality of rebuilt images. This technique exhibited with typical benchmark images is Lena, Cameraman, Boat, Girl, Peppers, Zelda, Sailboat, Toys, and Gold Hill. The proposed method provides improved results compared to that of the existing BTC based techniques in terms of bpp and PSNR.