Devices, methods, and non-transitory program storage devices are disclosed herein to provide improved multi-spectral image processing techniques for generating an enhanced output image, the techniques comprising: obtaining an N-channel (e.g., multispectral) input image; determining fusion weights and fallback weights (e.g., relative intensity weights) for each of the N-channels of the input image; blending the fusion and fallback weights based on an amount of gradient information to generate blended weights; modulating the blended weights for a plurality of frequency band representations of the input image; applying the modulated blended weights to the corresponding frequency band representations of the input image to generate a plurality of output image frequency band representations; producing an output luma image, based on the plurality of output image frequency band representations; and generating an output RGB image, based on the output luma image, which may then, e.g., be displayed to a user or stored to non-volatile memory.