Abstract: IHS transform can retain the complete information of high spatial resolution, and the wavelet transform fusion imaging has the better spectral information, therefore, the combination of the two transform image fusion can take advantage of their respective strengths to provide high-quality images for the subsequent information extraction. Based on the analyses of multi-sources data fusion methods at different levels, Beijing Miyun Reservoir and its surroundings were selected as the study area in this research. The data fusion methods including IHS transform, wavelet transform and integrated wavelet-IHS transform were firstly used to experiment with Landsat TM multispectral image and SPOT5 panchromatic image. Furthermore, in the fusion methods of wavelet transform and IHS wavelet transform, the two-dimensional continuous and discrete wavelet transform were used respectively, and the effects of the wavelet transformation layer numbers as well as the selection of the low-frequency coefficients and the high-frequency coefficients on the resulting fused images were discussed. Finally, the fusion results were evaluated by using subjectively qualitative method and objectively quantitative indices, after establishing elaborated ratings to each weight of the index. The results showed that the two-dimensional continuous wavelet method with two layers had better comprehensive effects among the three methods of wavelet, while IHS transform fusion method combined with the two-dimensional continuous wavelet method with two layers could maintain better spectral and spatial resolution, which mean the image quality could be improved significantly by fusing the data of Landsat TM and SPOT5 by using wavelet transform integrated with IHS, providing data security for image classification,information extraction and vegetation monitoring based on the remote sensing technique.