Satellite images play a major role in the analysis of land cover, topographic analysis, geosciences etc. There has always existed a tradeoff between the image resolution and the image cost. In this paper, a modified discrete wavelet transform and interpolation based technique is proposed for enhancing the resolution of satellite images having low resolution in such a way that a highly resolved satellite image can be obtained without losing any image information. The advent of DWT has given a major impetus to many techniques based on achieving super resolution starting with a single low resolution image. In the proposed method, DWT is employed on the input satellite image to decompose it into sub-bands then the high frequency sub- bands and the input low resolution satellite image have been interpolated to obtain four interpolated images which are later combined after minor alterations to the interpolated input image using IDWT. The quantitative peak signal-to-noise ratio (PSNR) and classification results show that the resolution has been enhanced to a good scale without losing any information content present in the satellite image.