Image registration is one of the most important tasks when integrating and analyzing information from various sources. It is a key stage in image fusion, change detection, super resolution imaging, and in building image information systems, among others. Image registration is the process of overlaying images (two or more) of the same scene taken at different times, from different viewpoints, and/or by different sensors. The registration geometrically aligns the reference and sensed images. The major registration purpose is to remove or suppress geometric distortions between referenced and sensed images. Image registration is a crucial step in all image analysis tasks in which final information is gained by combining various data resources. It is required in remote sensing, image fusion, environmental monitoring, medicine, military applications etc. In this paper we have proposed a wavelet based image registration technique that uses mutual information for registering images.