A three-dimensional wavelet-based algorithm for nonlinear registration of an elastic body model of the brain is developed. Surfaces of external and internal anatomic brain structures are used to guide alignment. The deformation field is represented with a multiresolution wavelet expansion and is modeled by the partial differential equations of linear elasticity. A progressive estimation of the registration parameters and the usage of an adaptive distance map reduce algorithm complexity, thereby providing computational flexibility that allows mapping of large, high resolution datasets. The performance of the algorithm was evaluated on rat brains. The wavelet-based registration method yielded a twofold improvement over affine registration.