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The usefulness of integration of SAR (ERS-1) and Landsat TM data for study active faults and the corresponding displaced landforms in flat or almost flat areas has been demonstrated. The study area is the Kozani basin which in May 13, 1995 was affected by a strong earthquake (Ms=6.6). After co-registration and resampling the two data sets were merged to form a combined image. The combined image offers the spectral characteristics of the TM data with the spatial resolution and roughness sensitivity of SAR images. The merging method used was the IMS to RGB transform. The criteria and parameters examined were geomorphic features, drainage network analysis, slope processes, terrain analysis, and observations on spatial distribution of soil cover as well as linear features that correspond to fracture zones crossing the basin. The use of the combined image allowed us to identify tectonic terraces in the basin produced by activity of normal faults located in the adjacent relief zone.