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Image fusion is a technique of combining two or more images so that the combined image is better enhanced than all these images. We propose that a fusion based approach on Multi Scale Retinex with Color Restoration(MSRCR) would give better image enhancement. Lower dynamic range of a camera as compared to human visual system causes images taken to be extremely dependent on illuminant conditions. MSRCR algorithm enhances images taken under a wide range of nonlinear illumination conditions to the level that a user would have perceived it in real time.