Abstract: In order to achieve smooth and continuous panorama stitching effect, an image fusion algorithm which based on contrast pyramid and combines color space conversion and Contourlet transform is proposed by considering the characteristics of panorama stitching. Firstly, luminance information of images is calculated using HSI transform. Then contrasting pyramid based Contourlet transform is used to decompose luminance information to get sub-band information of images. Finally, images are reconstructed by fusing different sub-bands information. Experimental results show that the proposed algorithm which leverages the contour features of Contourlet transform and the detail information of images could achieve good effects on panorama stitching fusion.