Digital halftoning is a crucial technique used in digital printers to convert a continuoustone image into a pattern of black and white dots. Halftoning is used since printers have a limited availability of inks and cannot reproduce all the color intensities in a continuous image. Error Diffusion is an algorithm in halftoning that iteratively quantizes pixels in a neighborhood dependent fashion. This thesis focuses on the development and design of a parallel scalable hardware architecture for high performance implementation of a high quality Stacked Error Diffusion algorithm. The algorithm is described in ‘C’ and requires a significant processing time when implemented on a conventional CPU. Thus, a new hardware processor architecture is developed to implement the algorithm and is implemented to and tested on a Xilinx Virtex 5 FPGA chip. There is an extraordinary decrease in the run time of the algorithm when run on the newly proposed parallel architecture implemented to FPGA technology compared to execution on a single CPU. The new parallel architecture is described using the Verilog Hardware Description Language. Post-synthesis and post-implementation, performance based Hardware Description Language (HDL), simulation validation of the new parallel architecture is achieved via use of the ModelSim CAD simulation tool.