Abstract: In order to fuse the information of multiple optical images in a certain area, an image fusion algorithm based on joint photographic experts group(JPEG) in wavelet domain was adopted. The main idea of the method was to regard the inverse wavelet transform as information fusion process. Each source image was compressed into a group of binary code flow according to JPEG standard. Then the group of binary code flow was taken as the wavelet coefficients and the fused image was obtained by taking inverse wavelet transform. The results show that the algorithm can realize the fusion of multiple gray-scale images and color images, improve the amount of information in a single space and be conducive to multiple images storage and transmission.