Image Fusion is the system of consolidating a few pictures from multi-modular sources with separate corresponding data to frame another picture, which conveys all the regular and integral highlights of individual pictures. With the ongoing quick advancements in the area of imaging innovations, multisensory frameworks have turned into a reality in wide fields, for example, remote detecting, restorative imaging, machine vision and the military applications. Picture combination gives a successful method for lessening this expanding volume of data by removing all the helpful data from the source pictures. Picture combination gives an incredible methodology to engage examination and examination of Multi-sensor data having equal information about the concerned territory. In proposed system, Laplacian pyramid Implement pixel level selection approach so that the fused image can be constructed pixel by pixel level considering the features of both the images at a time. In the proposed algorithm the input images are decomposed into four parts and then these parts and then wavelet transformation is performed by predictive coding technique.