This paper introduces a directional filter bank (DFB) for segmentation of NDE images containing directional information. The DFB is used to split an image into a desired number of sub-band images with each sub-band image containing features belonging only to a given angular range. The DFB is a two-channel decomposition employing the Quincunx sampling matrix and the diamond half band filter pair. The DFB is also designed to incorporate the property of perfect reconstruction or alias free reconstruction. Applications of the DFB towards segmenting C-scan images of fiber-reinforced composites, magnetic flux leakage (MFL) images of seamless tubes, IR images of solar cell panels and optical images for the computation of area coverage in a shot-peening process are discussed. © 2006 Elsevier Ltd. All rights reserved.