A color image fusion method based on compressed domain is proposed.First, IHS transformation is applied to the input images to obtain the I components.Second, low frequency coefficients after DWT are fused with DCT transformation, and the high frequency coefficients after DWT are applied with independent component analysis and then fused with area variance. Last, the fused coefficients are applied with inverse transformation to get the fused image.The experiment shows that this algorithm increases the information in the fused image while keeps the color distortion at lease.