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We propose a digital audio watermarking technique in the cepstrum domain. We insert a digital watermark into the cepstral components of the audio signal using a technique analogous to spread spectrum communications, hiding a narrow band signal in a wideband channel. In our method, we use pseudo-random sequences to watermark the audio signal. The watermark is then weighted in the cepstrum domain according to the distribution of cepstral coefficients and the frequency masking characteristics of the human auditory system. Watermark embedding minimizes the audibility of the watermark signal. The embedded watermark is robust to multiple watermarks, MPEG audio coding and additive noise.