Speckles are inherent to SAR. They hide and undermine several relevant information contained in the SAR images. In this paper, a despeckling algorithm using the shrinkage of two-dimensional discrete orthonormal S-transform (2D-DOST) coefficients in the transform domain along with shock filter is proposed. Also, an attempt has been made as a post-processing step to preserve the edges and other details while removing the speckle. The proposed strategy involves decomposing the SAR image into low and high-frequency components and processing them separately. A shock filter is used to smooth out the small variations in low-frequency components, and the high-frequency components are treated with a shrinkage of 2D-DOST coefficients. The edges, for enhancement, are detected using a ratio-based edge detection algorithm. The proposed method is tested, verified, and compared with some well-known models on C-band and X-band SAR images. A detailed experimental analysis is illustrated.