In this paper, we propose a method of applying a lifting-based wavelet domain e-median filter (LBWDEMF) for image restoration. LBWDEMF helps in reducing the number of computations. An e-median filter is a type of modified median filter that processes each pixel of the output of a standard median filter in a binary manner, keeping the output of the median filter unchanged or replacing it with the original pixel value. Binary decision-making is controlled by comparing the absolute difference of the median filter output and the original image to a preset threshold. In addition, the advantage of LBWDEMF is that probabilities of encountering root images are spread over sub-band images, and therefore the e-median filter is unlikely to encounter root images at an early stage of iterations and generates a better result as iteration increases. The proposed method transforms an image into the wavelet domain using lifting-based wavelet filters, then applies an e-median filter in the wavelet domain, transforms the result into the spatial domain, and finally goes through one spatial domain e-median filter to produce the final restored image. Moreover, in order to validate the effectiveness of the proposed method we compare the result obtained using the proposed method to those using a spatial domain median filter (SDMF), spatial domain e-median filter (SDEMF), and wavelet thresholding method. Experimental results show that the proposed method is superior to SDMF, SDEMF, and wavelet thresholding in terms of image restoration.