Transmission of wavelet-coded images over lossy packet networks presents an image reconstruction problem.A new image reconstruction algorithm called Wavelet Domain Interpolation for tree Reconstruction (WDIR) to conceal coefficients loss in Wavelet-Trees is developed.The reconstruction of the lost high-frequency coefficients is given by using mathematical morphological dilation operator based on the horizontal and vertical edge detection ability of 2-D wavelet transform.To maintain the sharpness of edges

we reconstruct the lost low-frequency coefficients under the direction of high-frequency coefficients.The algorithm performs well in performance simulations.