Abstract: Nonsubsampled Contourlet Transform（NSCT） is a new multi-resolution transform，which can give an asymptotic representation of edges and contours in image by virtue of its characteristics of multi-direction，flexible multi-scale and shift-invariant simultaneity.Non-negative Matrix Factorization（NMF） is a kind of matrix decomposition method with the constraint that each element of matrix is nonnegative.It is shown that the local feature can be obtained by choosing suitable dimension of the feature subspace in non-negative matrix factorization.An image fusion algorithm is proposed based on NSCT and NMF.Firstly，two registered original images are decomposed using NSCT separately thus the low frequency subband coefficients and varieties of directional bandpass subband coefficients are obtained.Secondly NMF is performed from original dates，which are obtained from the low frequency subband coefficients.The dimension of the feature subspace is set to 1 when using NMF and the resultant feature base is just the fusion result of low frequency subband coefficients.The selection principle of the band-pass directional subband coefficients is absolute maximum.Finally，the fused image is obtained by performing the inverse NSCT on the combined coefficients.The experimental results show that the proposed algorithm outperforms Laplacian-based，wavelet-based and NMF-based fusion algorithms.