In the digital world, image quality is of widespread importance in several areas of image application such as medical field, aerospace and satellite imaging, underwater imaging, etc. This requires the image obtained to be sharp and clear without any artifacts. Moreover, on zooming, the image should not lose any of its information. Thus, focusing on these points, Discrete Wavelet Transform has been practiced in combination with different interpolation methodologies to provide reconstruction of images via zooming and their PSNR values have been obtained. The research gave rise to a novel image zooming and reconstruction technique that improves the image quality of the enhanced images. This paper presents a proposed algorithm that is adopted to enhance a given original input image in the domain of wavelets and results have been proved with the help of PSNR values. The proposed algorithm is used further for contrast equalized images providing improvement in PSNR values and enhancement in images. The method is compared with existing papers. This verifies that the proposed technique is a better approach to provide good quality zoomed images.