Malvar wavelets or lapped orthogonal transform (LOT) has been recognized as a useful tool in eliminating blocking effects in transform coding. Recently, it has been also extended to more general forms, which enable one to construct an orthonormal basis from arbitrary local orthonormal bases on different intervals. In this paper, we study two-dimensional cases and construct nonseparable Malvar wavelets, which are potentially important in multidimensional signal analysis. With nonseparable Malvar wavelets, we then construct nonseparable Lemarie-Meyer wavelets which are band-limited. We discuss the implementation and applications of nonseparable Malvar wavelets in image processing. Finally, we present several numerical examples.