This paper proposes analog-digital mix-mode low power IC architecture inside the wireless endoscopic capsule, which assures that the capsule can implement the diagnoses of whole human digestive tract and provides real time endoscopic image monitoring. A new low complexity and low power digital IC design inside the wireless endoscopic capsule is discussed in detail. To decrease the power consumption, a novel architecture of three-stage clock management is applied for such a system. A new image compression algorithm based on Bayer image format and its corresponding hardware architecture are both presented for low power and low communication data rate application. The digital circuits were verified on FPGAs and have been implemented in 0.18mum CMOS process