Abstract: A novel image fusion algorithm using wavelet transform multiscale edges detection is proposed in this paper. This wavelet analysis image fusion method is feature-based. The source images are fused using their multiscale edges information. In order to preserve fusion image edges better, the denoising and edges detection combined are statistical parameters is used to evaluate multifocus image fusion performance. The technique determining optimal decomposition level has explicit physical meaning in this paper. Comparing source images entropy with fusion image entropy at the same decomposition level, if arbitrary source image entropy is larger than the fusion image entropy, it is not neccesary to make next level decomposition. Experimental results demonstrate the effectiveness of the algorithm which increases entropy and standard deviation of fusion image.