Image decomposition based on the discrete wavelet transform(DWT) has been proposed for efficient storage and progressive transmission of images for visual browsing in digital image libraries. Although the compression aspects of the DWT have been carefully researched, reconstruction errors due to corrupted wavelet coefficients have received less attention. In this paper, we consider the problem of bit errors affecting uniformly quantized wavelet coefficients. The proposed method, which is based on a local image model, simultaneously detects and masks corrupted wavelet coefficients.