Existing image fusion techniques such as the intensity-hue-saturation (IHS) transform and principal components analysis (PCA) methods may not be optimal for fusing the new generation commercial high-resolution satellite images such as Ikonos and QuickBird. One problem is color distortion in the fused image, which causes visual changes as well as spectral differences between the original and fused images. In this paper, a fast Fourier transform (FFT)-enhanced IHS method is developed for fusing new generation high-resolution satellite images. This method combines a standard IHS transform with FFT filtering of both the panchromatic image and the intensity component of the original multispectral image. Ikonos and QuickBird data are used to assess the FFT-enhanced IHS transform method. Experimental results indicate that the FFT-enhanced IHS transform method may improve upon the standard IHS transform and the PCA methods in preserving spectral and spatial information. ?? 2006 International Society for Photogrammetry and Remote Sensing, Inc. (ISPRS).