Digital watermarking techniques can be used to solve the authenticity and copyright protection issue of images. In this work, the authors have proposed an adaptive color image watermarking scheme based on DWT by combining alpha blending and entropy concept. Entropy is one of the important features of images and can be used for watermark insertion. There are two domains in which watermarking can be carried out i.e. spatial and transform domain. Here, watermark embedding is carried out in the of Y component of YCbCr color space. This paper also lays down the proper justification for the selection of the Y component to embed the watermark. The performance of the proposed scheme is tested over seven different standard color images. The average PSNR and SSIM of the proposed scheme are 51.6145 dB and 0.9992 respectively. Whereas, NCC of the proposed scheme under no attack condition is 1. Further, the performance of the proposed scheme is compared with other state-of-the-art techniques.