Satellite images are corrupted by noise during image acquisition and transmission. The removal of noise from the image by attenuating the high-frequency image components removes important details as well. In order to retain the useful information, improve the visual appearance, and accurately classify an image, an effective denoising technique is required. We discuss three important steps such as image denoising, resolution enhancement, and classification for improving accuracy in a noisy image. An effective denoising technique, hybrid directional lifting, is proposed to retain the important details of the images and improve visual appearance. The discrete wavelet transform based interpolation is developed for enhancing the resolution of the denoised image. The image is then classified using a support vector machine, which is superior to other neural network classifiers. The quantitative performance measures such as peak signal to noise ratio and classification accuracy show the significance of the proposed techniques.