In the past decade, a number of image encryption algorithms based on chaotic maps have been proposed. Recently, an image encryption algorithm based on chaotic map lattice (CML) is proposed that allows direct encryption and decryption of color digital images. In this paper, we propose an enhanced CML based algorithm for image encryption to improve the security of the algorithm. The performance of the proposed algorithm is analyzed through computer simulations. It is shown that the enhanced algorithm successfully and completely encrypts the color images and provides more distortion to the plainimages than previously proposed CML based algorithm for the same set of parameters. It is also shown that the proposed algorithm is more sensitive to a small change in plainimages, number of iterations and number of cycles. This makes the proposed algorithm more efficient and improves the level of security provided by the algorithm.