A color degradation compensation method includes the steps as follows. Two images are captured by an image capturing device, wherein the two images have an overlapped area. A semi-Gaussian model is constructed. At least one position in the overlapped area is selected and color values of a plurality of points in the position on each of the two images are read, wherein the points of each image are corresponded to the same position in the overlapped area. A degradation standard deviation of the two color values is calculated by the semi-Gaussian model. The color values of the two images are calibrated to compensated color values through the semi-Gaussian model again in accordance with the degradation standard deviation.