• Image fusion is a process of integrating two or more images into a single image with more details and information. • The high pass sub-bands in the 2-D DWT domain provide important features for image fusion algorithm. • We propose an efficient method of fusion using PCA and Wavelet transform. • The Wavelet used here is Haar Wavelet. The decimated coefficients are evaluated and fused using PCA(Principal Component Analysis). • These fused coefficients are reconstructed using inverse wavelet transform.