<b>Image Fusion using PCA Based Fusion Rule in Wavelet Domain</b> Image fusion deals with combination of two or more images at input to produce new fused output image. Image fusion is a branch of image processing which is developing rapidly. The main aim of image fusion is to provide maximum information in the resulting image produced from the fusion of two or more images of the same scene or different taken at different instant of time. The result of image fusion is an image with more information and better quality. PCA provides dimensionality reduction and feature extraction. DWT decomposes the image by a factor of two. LWT is a second generation wavelet. Image fusion, PCA, DWT, LWT 462-465 Issue-6 Volume-4 Deepak Gambhir