In this paper, a multiscale image decomposition method based on domain transform is proposed. The domain transform is a high speed edge preserving smoothing method and can be used to many image processing applications. However, it is highly sensitive to noise. The proposed method is based on filters used in the domain transform but is designed to be robust to noise by employing a multiscale method. An optimization problem is formulated to obtain desired domain- transformed output. As expected, the method can be used to many applications as the domain transform. We implement edge preserving smoothing for noise-free/noisy images and detail enhancement as possible applications. The results are satisfactory even in the noisy environment.