A method and apparatus of image processing is disclosed. The method and apparatus accomplish image processing by separating a luma component and a chroma component of an image signal. Averaging of at least some of the image pixels of the luma component is done over a plurality of image pixels to provide a plurality of surround function values. Retinex-like processing of the luma component is done using the surround function values to provide a Retinex-like processed luma component. The Retinex-like processed luma component is added to the chroma component of the image signal to provide a processed image signal.