Abstract: A novel hierarchical Mumford-Shah functional model is addressed to simultaneously segment,denoise and reconstruct the data within a given image and to handle important image features such as triple points and other multiple junctions, which can be seen as a hierarchical case of the Mumford-Shah minimal partition problem. At the same time, a new iterative tier-by-tier algorithm based on techniques of level set is proposed to minimize the hierarchical Mumford-Shah functional, which is more effective and more simple than existing algorithms such as the hierarchical approach proposed by Tsai A et al. and the multiphase level set methods proposed by Chan T et al.