Abstract: This research presents a wavelet-based filter bank approach for image compression and enhancement in the context of Alzheimer's disease diagnosis using medical imaging. The proposed system leverages the PyWavelets and OpenCV libraries in Python to implement Discrete Wavelet Transform (DWT) and Inverse Discrete Wavelet Transform (IDWT) algorithms. The primary objective is to develop an efficient image compression technique while preserving visual quality and enhancing relevant features for improved diagnostic accuracy. The system utilizes filter banks to process wavelet coefficients, enabling selective enhancement of patterns or biomarkers associated with Alzheimer's disease. Results show that the decompressed images closely resemble the originals, with low Mean Squared Error (MSE) and high Peak Signal-to-Noise Ratio (PSNR) values. Visual inspection and quantitative metrics confirm the successful preservation of image quality and structural details. The wavelet coefficients visualization highlights the captured significant features crucial for reconstruction