This paper proposed an effective multifocus color image fusion algorithm based on nonsubsampled shearlet transform (NSST) and pulse coupled neural networks (PCNN); the algorithm can be used in different color spaces. In this paper, we take HSV color space as an example, H component is clustered by adaptive simplified PCNN (S-PCNN), and then the H component is fused according to oscillation frequency graph (OFG) of S-PCNN; at the same time, S and V components are decomposed by NSST, and different fusion rules are utilized to fuse the obtained results. Finally, inverse HSV transform is performed to get the RGB color image. The experimental results indicate that the proposed color image fusion algorithm is more efficient than other common color image fusion algorithms.