Abstract: A method for optimizing memory usage required for processing a digital image by using Minimum Coded Entity Group (MCEG) information obtained during parsing, decoding or encoding the image is provided. An MCEG is formed by processing two consecutive coded entities (Minimum Coded Units (MCUs)) of an image. The MCEG information includes distances between start positions of each MCEG from a preset location, relative distance between coded entities within an MCEG and at least four DC values. DC values of a first coded entity within an MCEG are reconstructed by using stored DC values. For a second coded entity within an MCEG, stored predictor DC values are added to decoded differential DC values to get actual values and the actual values are used for MCU reconstruction. To process a portion of an image, a closest MCEG is determined and the corresponding MCU is directly accessed and decoded using the MCEG information.