The increase in the number of image processing tools to edit digital images and their ease of use have driven the need for image authentication techniques. A technique called Digital Watermarking based on hiding special codes in image has gained popularity among all other authentication techniques. An active research topic is to reconstruct the watermark even after a watermarked image has been processed by known attacks. Key point extraction algorithm, SURF, is used to determine pixels to hide and recover the watermark. Quantization index modulation technique is used during watermark embedding into pixel intensity values and recovery. A watermarking method based on SURF has been proposed as an alternative to SIFT based methods in the literature. Proposed method generates considerably high normalized correlation against attacks as shown in the results.