A novel image fusion algorithm based on bandelet transform is proposed. Bandelet transform can take advantage of the geometrical regularity of image structure and represent sharp image transitions such as edges efficiently in image fusion. For reconstructing the fused image, the maximum rule is used to select source images' geometric flow and bandelet coefficients. Experimental results indicate that the bandelet-based fusion algorithm represents the edge and detailed information well and outperforms the wavelet-based and Laplacian pyramid-based fusion algorithms, especially when the abundant texture and edges are contained in the source images.