In this paper, we propose a fuzzy-based multi-spectral (MS) and panchromatic (PAN) image fusion approach which provides a tradeoff solution between spectral and spatial fidelity and is able to preserve more detail in terms of spectral and spatial information. First, we perform principal component analysis on the multi-spectral images and utilise the first principal component to extract matched low and high frequency coefficients. We then apply fuzzy-based image fusion rules to fuse the first principal component with the PAN image, followed by fusing the approximation coefficients. The proposed approach is tested on several satellite images and shown to provide a feasible and effective approach.