In this paper, we have proposed a novel image enhancement technique based on M band wavelets. The conventional image enhancement algorithms opt for contrast enhancement using equalization techniques. Contrast enhancement is one of the most important issues in image enhancement techniques. High difference in luminance reflected from two adjacent surfaces results in a good contrast image which makes the object more distinguishable from other objects in the background. Many a times owing to over contrast, minute details of the images are lost; which cannot be tolerated for biomedical images. Moreover, they don't account for the noise embedded in the images. Also denoising using conventional filters result in blurring of images. The proposed algorithm not only denoises the image by retaining the high frequency edges, but also increases the contrast and generates a high resolution image. Various parameters like MSE and PSNR are been taken into account for comparison of enhanced images generated from the proposed algorithm with that of the conventional techniques.