A new edge-based approach for efficient image registration is proposed. The proposed approach applies wavelet transform to extract a number of feature points as the basis for registration. Each selected feature point is an edge point whose edge response is the maximum within a neighborhood. By using a line-fitting model, all the edge directions of the feature points are estimated from the edge outputs of a transformed image. In order to estimate the orientation difference between two partially overlapping images, a so-called "angle histogram" is calculated. From the angle histogram, the rotation angle which can be used to compensate for the difference between two target images can be decided by seeking the angle that corresponds to the maximum peak in the histogram. Based on the rotation angle, an initial matching can be performed. During the real matching process, we check each candidate pair in advance to see if it can possibly become a correct matching pair. Due to this checking, many unnecessary calculations involving cross-correlations can be screened in advance. Therefore, the search time for obtaining correct matching pairs is reduced significantly. Finally, based on the set of correctly matched feature point pairs, the transformation between two partially overlapping images can be decided. The proposed method can tolerate roughly about 10% scaling variation and does not restrict the position and orientation of images. Further, since all the selected feature points are edge points, the restriction can significantly reduce the search space and, meanwhile, speed up the matching process. Compared with conventional algorithms, the proposed scheme is a great improvement in efficiency as well as reliability for the image registration problem.