Ultrasound is a widely used medical imaging methodology because it is safe and relatively inexpensive. However, the quality of the images is affected by the point spread function of the system and coherent wave interference or speckle. The present research studies the averaging of images that have been displaced laterally and displays them using an interlaced grid. The main goals are to reduce speckle and improve contrast and resolution. The point spread function of the ultrasound scanner was estimated using a thin nylon thread within a water bath. Then, a set of eight images of a breast phantom (having lateral displacements smaller than the width of the point spread function) were averaged and interlaced. The results show a total improvement of 4% in signal to noise ratio and 7% in contrast to noise ratio.