Shape-based interpolation as applied to binary images causes the interpolation process to be influenced by the shape of the object. It accomplishes this by first applying a distance transform to the data. This results in the creation of a grey-level data set in which the value at each point represents the minimum distance from that point to the surface of the object. (By convention, points inside the object are assigned positive values; points outside are assigned negative values.) This distance transformed data set is then interpolated using linear or higher-order interpolation and is then thresholded at a distance value of zero to produce the interpolated binary data set. Here, the authors describe a new method that extends shape-based interpolation to grey-level input data sets. This generalization consists of first lifting the n-dimensional (n-D) image data to represent it as a surface, or equivalently as a binary image, in an (n+1)-dimensional [(n+1)-D] space. The binary shape-based method is then applied to this image to create an (n+1)-D binary interpolated image. Finally, this image is collapsed (inverse of lifting) to create the n-D interpolated grey-level data set. The authors have conducted several evaluation studies involving patient computed tomography (CT) and magnetic resonance (MR) data as well as mathematical phantoms. They all indicate that the new method produces more accurate results than commonly used grey-level linear interpolation methods, although at the cost of increased computation.