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In this paper, a new algorithm for content-based image indexing and retrieval is presented. The proposed method is based on a combination of multiresolution analysis and color correlation histogram of the image. According to the new algorithm, wavelet coefficients of the image are computed first using Daubechies wavelets. A quantization step is then applied before computing horizontal and vertical color correlograms of the wavelet coefficients. Finally, index vectors are constructed using these wavelet correlograms. The retrieval results obtained by the new method on a 1000 image database demonstrated a significant improvement in effectiveness and efficiency compared to the indexing and retrieval methods based on image color correlogram or wavelet transform.