Abstract: Stereo vision is the process of viewing two different perspective projections of the same real world scene and perceiving the depth that was present in the original scene. These projections offer a compact 2-dimensional means of representing a 3-dimensional scene, as seen by one observer. Different display schemes have been developed to ensure that each eye sees the image that is intended for it. Each image in the image pair is referred to as the left or right image depending on the eye it is intended for. The binocular cues contain unambiguous information in contrast to monocular cues like shading or coloring. Hence binocular stereo may be quite useful, for instance, in video based training of personnel. On the entertainment side, it can make mundane TV material lively. Though the concept has been around for more than half a century, only recently have technically effective ways of making stereoscopic displays and the usually required eyeware emerged. Despite this progress, stereo TV can be made a cost effective add-on option only if the increased bandwidth requirement is relaxed somehow. Since the two images are projections of the same scene from two nearby points of view, they are bound to have a lot of redundancy between them. By properly exploiting this redundancy, the two image streams might be compressed and transmitted through a single monocular channel's bandwidth. The first step towards stereoscopic image sequence compression is 'still' stereo image pair compression that exploits the high correlation between the left and right images, in addition to exploiting the spatial correlation within each image. The temporal correlation between the frames can be taken advantage of, along the lines of the MPEG (Motion Picture Experts Group) standards, to achieve further compression. The final step would be to explore the correlation between left and right frames with a time offset between them. In this paper a multiresolution based approach is proposed for compressing 'still' stereo image pairs. In Section II the task at hand is contrasted with the stereo disparity estimation problem in the machine vision community; a block based scheme on the lines of a motion estimation scheme is suggested as a possible approach. In Section III, the suitability of hierarchical techniques for disparity estimation is outlined. Section IV provides an overview of wavelet decomposition. Section V details the multiresolution approach taken. In section VI, the typical computational gains and compression ratios possible with this …