Proposed here is a new method of generating textured binary images using Varied Kernel (VK) transforms. The varied kernel transforms are perfectly invertible real kernel orthogonal transforms. A property of VK transform is that when an image is decomposed by a kernel and is reconstructed by a slightly different inverse kernel and binarized, the resulted binary image is a textured image. The generated textured binary image carries shade information as in dithered or halftone image and hence is more meaningful and artistic than normal binary image. Textured binary images of different qualities can be achieved by varying the types of the kernels used. Key words: Textured binary image, dithering, VK transforms, real kernel, orthogonal transforms