Considering that the image of natural scenery has fractal character, a wavelet fractal interpolation algorithm is presented, which is applied in remote sensing image processing. The wavelet transform processes the high frequency information and the low frequency information simultaneously, which is like the human visual system. The fractal interpolation algorithm can preserve the texture information of image. So, the wavelet fractal interpolation algorithm uses fractal interpolation algorithm to anticipate the high frequency part on high resolution from the high frequency part on low resolution. It has been found that this new wavelet fractal interpolation has better performance than the existing bilinear interpolation algorithm.