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This paper proposes a new method of fusing panchromatic and multispectral images based on NSCT and IHS. The I component is obtained by applying IHS on multispectral images. Then fusing the I component and panchromatic images through NSCT. Substituting the new fusion data performed by inverse NSCT for I component and applying the inverse IHS transform. Experimental results show that the proposed method can effectively preserve spectral information and improve spatial information than traditional IHS and NSCT, and has better subjective visual effect.