The visual quality of medical images is an important aspect in PACS implementation. In this study, on the basis of wavelet analysis, a denoising and enhancement algorithm for medical image is proposed. The algorithm mainly includes six steps. At first, an effcient method is investigated for Poisson Noise remove. Second, diagnosis features of the denoised image are enhanced by compressing the dynamic range. Third, we extract the high frequency component of the original image by the designed lowpass filter. Fourth, the extracted high frequency component are segment into diagnosis feature component in the high signal range, the diagnosis feature component in the low signal range, and the noise component. Five, we reconstruct an image using image fusion. Finally, we make DICOM calibration for used display and decide parameters of the image fusion, resulting in the diagnosis image. Experimental results show that this new scheme offers effective noise removal in medical images and enhancing sharpness. More importantly, this scheme can improve the diagnostic value of the display image on the commercial display successfully.