This document describes a method for enhancing underwater images using wavelet decomposition and fusion on an FPGA (field programmable gate array). Underwater images often have low contrast and visibility due to light scattering in water. The proposed method performs color correction and contrast enhancement on an input underwater image. It then decomposes the color-corrected and contrast-enhanced images into low and high frequency components using wavelet transforms. Image fusion is performed on the wavelet coefficients to combine the detailed information from both images. The fused image is reconstructed via inverse wavelet transform. Experimental results show the proposed fusion-based approach improves underwater image visibility. Implementing the algorithm on an FPGA provides benefits over general processors for computationally intensive image processing.