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X-ray luggage inspection systems play an important role in ensuring air travelers security. However, the false alarm rate of commercial systems can be as high as 20% due to less than perfect image processing algorithms. In an effort to reduce the false alarm rate, this paper proposes a combinational scheme to fuse, de-noise and enhance dual-energy X-ray images for better object classification and threat detection. The fusion step is based on the wavelet transform. Fused images generally reveal more detail information; however, background noise often gets amplified during the fusion process. This paper applies a backgroundsubtraction- based noise reduction technique which is very efficient in removing background noise from fused X-ray images. The de-noised image is then processed using a new enhancement technique to reconstruct the final image. The final image not only contains complementary information from both source images, but is also background-noise-free and contrastenhanced, therefore easier to segment automatically or be interpreted by screeners, thus reducing the false alarm rate in X-ray luggage inspection.