Abstract-Image fusion is a popular application of image processing which performs merging of two or more images into one. The merged image is of improved visual quality and carries more information content. The present work introduces a new image fusion method in complex wavelet domain. The proposed fusion rule is based on a level dependent threshold, where absolute difference of a wavelet coefficient from the threshold value is taken as fusion criteria. This absolute difference represents variation in the image intensity that resembles the salient features of image. Hence, for fusion, the coefficients that are far from threshold value are being selected. The motivation behind using dual tree complex wavelet transform is due to failure of real valued wavelet transform in many aspects. Good directional selectivity, availability of phase information and approximate shift invariant nature of dual tree complex wavelet transform make it suitable for image fusion and help to produce a high quality fused image. To prove the strength of the proposed method, it has been compared with several spatial, pyramidal, wavelet and new generation wavelet based fusion methods. The experimental results show that the proposed method outperforms all the other state-ofthe-art methods visually as well quantitatively as in terms of standard deviation, mutual information, edge strength, fusion factor, sharpness and average gradient.Index Terms-Image fusion, dual tree complex wavelet transform, level dependent threshold, threshold based fusion, multiresolution analysis.