A novel method for calculating optimum incidence angle for the TanDEM-X system using any available digital elevation model (DEM) for the given area is proposed in this study. This method includes the plotting of slopes and aspect of the test area in a statistical way and applying mathematical approach using acquisition geometry in ascending and descending pass TanDEM-X data to optimize the incidence angle for obtaining precise DEM. Furthermore, the TanDEM-X raw DEMs in ascending and descending pass over Mumbai, India are combined using a simple weighted fusion algorithm and the quality of fused DEM thus generated is enhanced. The method adopted for fusion is just an experimental study. The problem of optimum weight selection for fusion has been addressed using height error map and a robust layover shadow mask calculated in "Integrated TanDEM-X Processor" (ITP) during TanDEM-X DEM generation. The height error map is calculated from the interferometric coherence with geometrical considerations and the robust layover and shadow map is calculated using TanDEM-X DEM and the corresponding slant range. Results show a significant reduction in the number of invalid pixels after fusion. In the fused DEM, invalids are only 2.14%, while ascending and descending pass DEMs have 5.02% and 6.34%, respectively. Statistical analysis shows a slight improvement in standard deviation of the error in fused DEM by 8% in urban area and about 5% for the whole scene. Only slight improvement in accuracy of fused DEM can be attributed to the coarse resolution of the SRTM-X DEM used as reference.Index Terms-Fusion, layover, optimum incidence angle, TanDEM-X digital elevation model (DEM), weightage.