Abstract: The technique of stereo image processing will be the point direction of multi-media development in the future.The disparity estimation is one of the most important techniques.By analyzing the shortages of current disparity estimation methods，a new method based on redundant discrete wavelet transforms is put forward.First，the reference image is transformed and the characteristic points are obtained，then disparity estimation is processed according to the points.Test results show that the new method can obtain the parallax vectors and well reconstruction of stereo images.The method is also tested with multi-media chip DM642 of TI.Experimental results show that the designed project has solid real time ability，and can reduce the complexity of operation.