A method of and an apparatus for image enhancement taking ambient illuminance into consideration. The image enhancement method includes calculating an original-luminance contrast which is a luminance contrast with respect to an original-luminance of pixels forming an original image, calculating a fade-luminance by reflecting the variation of perceived luminance based on an ambient illuminance into the original-luminance, calculating a defade-luminance by converting the fade-luminance to maintain the original-luminance contrast, and calculating a display-luminance by reflecting the variation of perceived luminance by the ambient illuminance into the defade-luminance. Improving luminance contrast through adjustment of luminance based on ambient illuminance, effectively reduces the fade phenomenon.