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Resolution enhancement (RE) schemes (which are not based on wavelets) suffer from the drawback of losing high-frequency contents (which results in blurring). The discrete-wavelet-transform-based (DWT) RE scheme generates artifacts (due to a DWT shift-variant property). A wavelet-domain approach based on dual-tree complex wavelet transform (DT-CWT) and nonlocal means (NLM) is proposed for RE of the satellite images. A satellite input image is decomposed by DT-CWT (which is nearly shift invariant) to obtain high-frequency subbands. The high-frequency subbands and the low-resolution (LR) input image are interpolated using the Lanczos interpolator. The high-frequency subbands are passed through an NLM filter to cater for the artifacts generated by DT-CWT (despite of its nearly shift invariance). The filtered high-frequency subbands and the LR input image are combined using inverse DT-CWT to obtain a resolution-enhanced image. Objective and subjective analyses reveal superiority of the proposed technique over the conventional and state-of-the-art RE techniques.