A system and method for removing digital watermarks from a watermarked image of an electronic device are provided. The method decomposes the watermarked image to a plurality of Eigen-images, assigns an identifier to each of the Eigen-images in sequence, and identifies an identifier range of the Eigen-images to be removed from the watermarked image. The method further selects Eigen-images having watermarked information from the identifier range, deletes the Eigen-images having watermarked information from the Eigen-images within the identifier range, and integrates the remainder Eigen-images of the identifier range to form a composite image. Additionally, the method determines whether the composite image is distorted, and stores the composite image into a storage device of the electronic device if the composite image is not distorted.