Image denoising is a crucial task in image processing, aiming to enhance image quality by effectively eliminating noise while preserving essential structural and textural details. In this paper, we introduce a novel denoising algorithm that integrates residual Swin transformer blocks (RSTB) with the concept of the classical non-local means (NLM) filtering. The proposed solution is aimed at striking a balance between performance and computation complexity and is structured into three main components: (1) Feature extraction utilizing a multi-scale approach to capture diverse image features using RSTB, (2) Multi-scale feature matching inspired by NLM that computes pixel similarity through learned embeddings enabling accurate noise reduction even in high-noise scenarios, and (3) Residual detail enhancement using the swin transformer block that recovers high-frequency details lost during denoising. Our extensive experiments demonstrate that the proposed model with 743k parameters achieves the best or competitive performance amongst the state-of-the-art models with comparable number of parameters. This makes the proposed solution a preferred option for applications prioritizing detail preservation with limited compute resources. Furthermore, the proposed solution is flexible enough to adapt to other image restoration problems like deblurring and super-resolution.