Many common modalities of medical images acquire high-resolution and multispectral images, which are subsequently processed, visualized, and transmitted by subsampling. These subsampled images compromise resolution for processing ability, thus risking loss of significant diagnostic information. A hybrid multiresolution vector quantizer (HMVQ) has been developed exploiting the statistical characteristics of the features in a multiresolution wavelet-transformed domain. The global codebook generated by HMVQ, using a combination of multiresolution vector quantization and residual scalar encoding, retains edge information better and avoids significant blurring observed in reconstructed medical images by other well-known encoding schemes at low bit rates. Two specific image modalities, namely, X-ray radiographic and magnetic resonance imaging (MRI), have been considered as examples. The ability of HMVQ in reconstructing high-fidelity images at low bit rates makes it particularly desirable for medical image encoding and fast transmission of 3D medical images generated from multiview stereo pairs for visual communications.