It is a current need of research to extensively use the freely available satellite images Moderate Resolution Imaging Spectroradiometer (MODIS). The problem with these images are its poor spatial resolution that restricts its use in various applications. This restriction may be minimized by application of the fusion techniques where high resolution image will be used to fuse with low resolution images. Another important aspect of fusion of different sensors data like optical and radar images (where both can provide the complimentary information) and the resultant fused image after fusion may give enhanced and some useful information that may be beneficial for various application. Therefore in this paper an attempt has been made to fuse the full polarimetric Phased Arraytype L-band SAR(PALSAR) image with MODIS image and assess the quality of fused image. PALSAR image has a advantage of availability of data in four different channels. These four channels are HH(Transmitted horizontal polarization and received also in horizontal polarization), HV(Transmitted horizontal polarization and received vertical polarization), VH (Transmitted vertical polarization and received horizontal polarization) and VV (Transmitted vertical polarization and received vertical polarization), which provides various landcover information. The Atrous Wavelet fusion technique has been applied for MODIS band 1 and 2 and PALSAR HH(, HV and VV bands for assessing the effect of fusion in land cover distinction. The three major land covers agriculture, urban and water are considered for evaluation of fusion of these images for the Roorkee area of India. The results are quite encouraging and in near future it may provide a better platform for the maximize the use of MODIS images