In today's world, WSN's have become an important part in our day to day life. It is being used extensively in various fields of technology which is a part of our daily life like home automation, traffic control, health care, food production, security etc. This work proposes algorithms for data collection and compression in WSN for effective use of energy and space. The book contributed better data collection algorithm for reducing the dead nodes during data transmission and also contributed better image compression algorithm and text compression algorithm for saving the sensor energy.