Aspects of the subject technology relate to electronic devices with displays and ambient light sensors. An electronic device modifies the color of images to be displayed based on measured ambient light color. The modification is performed in a perceptually uniform color space and includes a determination of a bleaching effect of reflected ambient light, and a determination of a color correction factor to be applied within the perceptually uniform color space, based on the determined bleaching effect. The modification may also include an application of a strength factor that mitigates out-of-gamut colors in color compensated images.