Intensity-Hue-Saturation (IHS), Brovey Transform (BT), and Smoothing-Filter-Based-Intensity Modulation (SFIM) algorithms were used to pansharpen GeoEye-1 imagery. The pansharpened images were then segmented in Berkeley Image Seg using a wide range of segmentation parameters, and the spatial and spectral accuracy of image segments was measured. We found that pansharpening algorithms that preserve more of the spatial information of the higher resolution panchromatic image band (i.e., IHS and BT) led to more spatially-accurate segmentations, while pansharpening algorithms that minimize the distortion of spectral information of the lower resolution multispectral image bands (i.e., SFIM) led to more spectrally-accurate image segments. Based on these findings, we developed a new IHS-SFIM combination approach, specifically for object-based image analysis (OBIA), which combined the better spatial information of IHS and the more accurate spectral information of SFIM to produce image segments with very high spatial and spectral accuracy.