This　paper　presents　an　nonlinear　algorithm　for　speckle　reduction　and　contrast　enhancement　of　ultrasound　image.　Speckle　is　multiplicative　noise　and　is　mainly　reason　to　make　ultrasonic　image　degenerate.　We　adopt　Jain＇s　speckle　noise　model　to　carry　out　our　scheme.　Shrinkage　of　wavelet　coefficients　via　soft　thresholding　within　finer　levels　of　scale　is　carried　out　on　coefficients　of　logarithmically　transformed　Ultrasonic　image.　Enhancement　of　image　features　is　accomplished　via　nonlinear　stretching　followed　by　hard　thresholding　of　wavelet　coefficients　within　mid-range　spatial　frequency　levels　of　analysis.　A　sparially　weighted　averaging　operation　is　done　to　smooth　wavelet　coefficient　at　first　Level　in　order　to　avoid　effect　of　pulse　energy.　We　show　experimentally　that　this　technique　produced　superior　results　when　compared　to　results　obtained　from　existing　denoising　methods　alone.　A　study　suggests　that　such,　denoising　and　enhancement　may　improve　the　overall　consistency　of　expert.