In this paper we are describing some important state-of the-art algorithms used for Image interpolation.These algorithms are broadly classified as prediction based and transform based methods. Motivation behind this work is to provide new researchers a detailed analysis of such algorithms in the context of artifacts, subjective and objective quality of interpolated image, computational cost and to give future research direction based on the analysis. However, the goal of this study was not to determine an overall best method, but to present a comprehensive catalogue of methods in a uniform terminology, to define general properties and requirements local techniques, and to enable the reader to select that method which is optimal for his specific application. © 2010 Copyright SPIE - The International Society for Optical Engineering.