In watermarking schemes, watermarking can be viewed as a form of communication problems. Almost all of previous works on image watermarking capacity are based on information theory, using Shannon formula to calculate the capacity of watermarking. In this paper, we present a blind watermarking algorithm using Hopfield neural network, and analyze watermarking capacity based on neural network. In our watermarking algorithm, watermarking capacity is decided by attraction basin of associative memory.