The Glimmer Imager of Urbanization (GIU) on SDGSAT-1 provides high-resolution and global-coverage images of night-time lights (NLs) with 10 m panchromatic (PAN) and 40 m multispectral (MS) imagery. High-resolution 10 m MS NL images after ideal fusion can be used to better study subtle manifestations of human activities. Most existing remote sensing image-fusion methods are based on the fusion of daytime optical remote sensing images, which do not apply to lossless compressed images of the GIU. To address this limitation, we propose a novel approach for 10 m NL data fusion, namely, a GIU NL image fusion model based on PAN-optimized OIS (OIS) and DDF (DDF) fusion for SDGSAT-1 high-resolution products. The OIS of PAN refers to the optimized stretching method that integrates linear and gamma stretching while DDF indicates a fusion process that separately merges the dark and light regions of NL images using different fusion methods, then stitches them together. In this study, fusion experiments were conducted in four study areas—Beijing, Shanghai, Moscow, and New York—and the proposed method was compared to traditional methods using visual evaluation and five quantitative evaluation metrics. The results demonstrate that the proposed method achieves superior visual quality and outperforms conventional methods across all quantitative metrics. Additionally, the ablation study confirmed the necessity of the methodological steps employed in this study.