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To reduce colors in an image
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Open the image or frame you want to convert.
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Choose Palette > Reduce Colors (Figure 2).
If the
Palette Commands toolbar is active, you also can click 
.
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Figure 2 For more control over which colors are eliminated from an image, choose Palette > Reduce Colors.
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When the Reduce Colors dialog box appears, set the desired color depth using the target number and base palette pop-up menus (Figures 3 and 4).
For details, see Reduce Colors options on the next page.
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Choose a color reduction method and whether you want dithering to be applied or not.
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Once you've made your choices, click OK and the image's colors will be reduced.
Figure 3 When the Reduce Colors dialog box appears, set the desired color depth using the target number and base palette pop-up menus.
Figure 4 When the Reduce Colors dialog box appears, set the desired color depth using the target number and base palette pop-up menus.