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Image mosaicing is the act of combining two or more images and is used in many applications in computer vision, image processing, and computer graphics. It aims to combine images such that no obstructive boundaries exist around overlapped regions and to create a mosaic image that exhibits as little distortion as possible from the original images. In the proposed technique, the to-be-combined images are first projected into wavelet subspaces. The images projected into the same wavelet space are then blended. Our blending function is derived from an energy minimization model which balances the smoothness around the overlapped region and the fidelity of the blended image to the original images. Experiment results and subjective comparison with other methods are given.