The invention provides a multifunctional image processing method based on wavelet transform. The multifunctional image processing method comprises the following steps: step 1, reading an original image; 2, decomposing the original image into a high-frequency part and a low-frequency part by wavelet transform; 3, for the high-frequency part of the image, performing threshold quantization processingon all high-frequency coefficients, and then performing median filtering to complete compression of the high-frequency part and image enhancement; 4, for the low-frequency part of the image, enhancing a low-frequency coefficient by adopting an improved function; and step 5, reconstructing the processed high-frequency part and the processed low-frequency part by using wavelet inverse transformation to obtain a reconstructed image. According to the method, wavelet transformation is adopted to process the image, so that the entropy after signal transformation is reduced, the non-stationarity ofthe signal can be well described, and feature extraction and protection are facilitated. According to the method, wavelet transform is adopted, so that denoising is more facilitated in a wavelet domain than in a time domain, and different wavelet functions can be selected according to different application requirements to obtain an optimal processing effect.