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The existence of numerous imaging modalities makes it possible to present different data present in different modalities together thus forming multimodal images. Component images forming multimodal images should be aligned, or registered so that all the data, coming from the different modalities, are displayed in proper locations. Mutual Information is the similarity measure used in this case for optimizing the two images. This method requires estimating joint histogram of the two images. The fusion of images is the process of combining two or more images into a single image retaining important features from each. The discrete wavelet transform (DWT) has become an attractive tool for fusing multimodal images. In this work it has been used to segment the features of the input images to produce a region map. Features of each region are calculated and a region based approach is used to fuse the images in the wavelet domain.