This paper presents a new image fusion scheme based on the combination of multi

r

esolution wavelet decomposition and IHS transform for the fusion of High

r

esolution Panchromatic and Multi

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pectral images. The Panch romatic high resolution image is firstly decomposed to the wavelet planes

then the wavelet planes are added to the intensity component of IHS representation of th e multi

s

pectral image. In the proposed method all the spectral characteristics have been preserved

and the definition and the spatial quality of multi

s

pectra l image have been improved. Fusion result keeps the contrast of multi

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pectral i mage. Experimental results including the fusion of black

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hite aerial and Landsa t （TM） images

Landsat TM and SAR images are presented. Compared with the WT and IHS method

the proposed scheme is much better and it possesses more adaptabili ty.