In order to improve the image analysis ability in some practical applications, an image fusion algorithm was proposed. This algorithm combined information from multiple images of the same scene in pixel level. Firstly, a group of lifting morphological wavelets for image fusion was discussed. Then using one of the schemes, multiple images were shift in different direction and decomposed respectively. Next, the transform coefficients were processed according to certain fusion criterion and some fusion results could be obtained through inverse transform and inverse displacement. Finally, such fused images were filtered to be one image we need. Computer simulation shows this algorithm in morphological wavelet domain can fuse grayscale images or color images effectively. Compared with the conventional wavelet transform, it gets a more complete and clearer scene.