The notion of fuzzy sets whose characteristic function is defined over a proper subset of the universal set is discussed. Arising out of this, operations on fuzzy sets over restricted domains of interest are defined. The implications of the use of fuzzy domains of interest is explored. Domain shift operations , which yield a new domain of interest as well as operating on the fuzzy set, are introduced and used to define sequences of operations that terminate when the domain of interest is empty. Some of the ideas are used to extend image processing techniques and hence generalize certain raster graphics operations from the binary image case to grey-scale and colour images.