This paper presents a computationally efficient source estimation algorithm that localizes cortical oscillations and their phase relationships. The proposed method employs wavelet-transformed magnetoencephalography (MEG) data and uses anatomical MRI to constrain the current locations to the cortical mantle. In addition, the locations of the sources can be further confined with the help of functional MRI (fMRI) data. As a result, we obtain spatiotemporal maps of spectral power and phase relationships. As an example, we show how the phase locking value (PLV), that is, the trial-by-trial phase relationship between the stimulus and response, can be imaged on the cortex. We apply the method to spontaneous, evoked, and driven cortical oscillations measured with MEG. We test the method of combining MEG, structural MRI, and fMRI using simulated cortical oscillations along Heschl's gyrus (HG). We also analyze sustained auditory gamma-band neuromagnetic fields from MEG and fMRI measurements. Our results show that combining the MEG recording with fMRI improves source localization for the non-noise-normalized wavelet power. In contrast, noise-normalized spectral power or PLV localization may not benefit from the fMRI constraint. We show that if the thresholds are not properly chosen, noise-normalized spectral power or PLV estimates may contain false (phantom) sources, independent of the inclusion of the fMRI prior information. The proposed algorithm can be used for evoked MEG/EEG and block-designed or event-related fMRI paradigms, or for spontaneous MEG data sets. Spectral spatiotemporal imaging of cortical oscillations and interactions in the human brain can provide further understanding of large-scale neural activity and communication between different brain regions.