A novel enhancement algorithm for magnetic resonance (MR) images based on spatial homomorphic filtering transform is proposed in this paper. By this method, the source image is decomposed into different sub-images by dyadic wavelet transform. Homomorphic filtering functions are applied in performing filtering of corresponding sub-band images to attenuate the low frequencies as well as amplify the high frequencies, and a linear adjustment is carried out on the low frequency of the highest level. Later, inverse dyadic wavelet transform is applied to reconstruct the object image. Experiment results on MR images illustrate that the proposed method can eliminate non-uniformity luminance distribution effectively, some subtle tissues can be improved effectually, and some weak sections have not been smoothed by the novel method.