System and method for memory efficient decode and viewing of compressed image files. A preferred embodiment comprises a decoder coupled to a data input, a resize unit coupled to the decoder, a memory coupled to the resize unit, and a reorder data unit coupled to the memory. The decoder decompresses image data that is provided by the data input, while the resize unit resizes the decompressed image data from a first size to a second size. The memory stores the resized image data and the reorder data unit rearranges the image data into a format suitable for display. By resizing the image data prior to subsequent processing, memory requirements (such as storage space and bandwidth) are reduced.