Abstract: By applying Grey System Theory,a grey relational analysis （GRA） relying on wavelet coefficients is presented.The algorithm makes full use of perfect integral comparison mechanism of GRA and the well matching of discrete wavelet transform with multi-channel model of Human Visual System. Experimental results show that the proposed algorithm can not only evaluate the integral and detail quality of image fidelity accurately but also bears more consistency with the human visual system than the traditional method PSNR.