A new image fusion method based on hue-saturation-value (HSV) color space is proposed, the improved HSV fuses multi-spectral (MS) and panchromatic (PAN) images to improve spatial information and preserve spectral characteristics. The main advantage of the new fusion method is a simple and efficient way which can maximize the extraction of the spatial information and eliminate the disturbance of spectral information in PAN image. the difference of the low components information between PAN and the value component is filtered from the PAN image, and then value component are replaced by the new PAN image, the new HSV color space perform reverse transform to obtain a multispectral image with the high spatial resolution.SPOT-5 and QuickBird MS and PAN images were employed to execute the existing HSV and improved HSV fusion methods. Qualitative and quantitative analyses and classification accuracy assessment were conducted to evaluate the performance of the fusion methods. The results demonstrate that the improved HSV is better than traditional HSV methods. The new fusion method can achieve a wide range of balance between high spatial resolution retention and spectral characteristic preservation.