A new multispectral image fusion method based on intensity-hue-saturation (IHS) transform and three-channel non-separable wavelets whose dilation matrix is [2,1;–1,1] is proposed. The multi-resolution decompositions of the intensity of multispectral image and panchromatic image are performed in nonsubsampled mode using the three-channel non-separable wavelet filter bank. The approximation images and the detail images of the multi-resolution pyramids are fused. The experimental results show that this method has good visual effect. The performance outperforms the IHS fusion method, the discrete wavelet transform (DWT) fusion method, and the IHS-DWT fusion method in preserving spectral quality and high spatial resolution information.