Multiwavelets are a new addition to the body of wavelet theory. Realizable as matrix-valued filter banks leading to wavelet bases, multiwavelets offer simultaneous orthogonality, symmetry, and short support, which is not possible with scalar 2-channel wavelet systems. After reviewing this recently developed theory, we examine the use of multiwavelets in a filter bank setting for discrete-time signal and image processing. Multiwavelets differ from scalar wavelet systems in requiring two or more input streams to the multiwavelet filter bank. We describe two methods (repeated row and approximation/deapproximation) for obtaining such a vector input stream from a one-dimensional signal. Algorithms for symmetric extension of signals at boundaries are then developed, and naturally integrated with approximation-based preprocessing. We describe an additional algorithm for multiwavelet processing of two-dimensional signals, two rows at a time, and develop a new family of multiwavelets (the constrained pairs) that is well-suited to this approach. This suite of novel techniques is then applied to two basic signal processing problems, denoising via wavelet-shrinkage, and data compression. After developing the approach via model problems in one dimension, we applied multiwavelet processing to images, frequently obtaining performance superior to the comparable scalar wavelet transform.