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Taking advantage of both the scaling property of wavelets and the high learning ability of neural networks, wavelet networks have recently emerged as a powerful tool in many applications in the field of signal processing such as data compression, function approximation as well as image recognition and classification. A novel wavelet network-based method for image classification is presented in this paper. The method combines the Orthogonal Least Squares algorithm (OLS) with the Pyramidal Beta Wavelet Network architecture (PBWN). First, the structure of the Pyramidal Beta Wavelet Network is proposed and the OLS method is used to design it by presetting the widths of the hidden units in PBWN. Then, to enhance the performance of the obtained PBWN, a novel learning algorithm based on orthogonal least squares and frames theory is proposed, in which we use OLS to select the hidden nodes. In the simulation part, the proposed method is employed to classify colour images. Comparisons with some typical wavelet networks are presented and discussed. Simulations also show that the PBWN-orthogonal least squares (PBWN-OLS) algorithm, which combines PBWN with the OLS algorithm, results in better performance for colour image classification. [ABSTRACT FROM AUTHOR]