A scene to be photographed usually includes objects at various distances and this causes the out of focus objects appear blurry. This paper presents a multi-focus image fusion method to solve this problem. It utilizes Laplacian pyramid and discrete wavelet transform to extract important information from two sources images and fuse them into a single image with high spatial and high spectral information. The algorithm has been tested on synthetic images and natural images with satisfactory results. Robustness in a small degree of shift is also tested on the proposed algorithm. The algorithm is illustrated to be applicable to color image fusion and multi-sensor image fusion as well.