The presented work proposes fusion of panchromatic and multispectral images in a shearlet domain. The proposed fusion rules rely on the regional considerations which makes the system efficient in terms of spatial enhancement. The luminance hue saturation-based color conversion system is utilized to avoid spectral distortions. The proposed fusion method is tested on Worldview2 and Ikonos datasets, and the proposed method is compared against other methodologies. The proposed fusion method performs well against the other compared methods in terms of subjective and objective evaluations.