In this paper we provide a new image restoration method based on the multiscale regularization in the redundant wavelet transform domain. The proposed method uses the redundant wavelet transform to decompose the single-scale image restoration problem to multiscale ones and applies scale dependent regularization to the decomposed restoration problems. The proposed method recovers sharp edges by applying rather less regularization to wavelet related restorations, while suppressing the resulting noise magnification by the wavelet shrinkage algorithm. The improved performance of the proposed method over more traditional Wiener filtering is shown through numerical experiments.