Images produced by IR cameras are a specific source of information. The perception and interpretation of such image greatly depends on thermal properties of observed object and surrounding scenery. In practice, the optimal settings of the camera as well as automatic temperature range control do not guarantee the displayed images is optimal from observer's point of view. The solution to this could be the methods and algorithms of digital image processing implemented in the camera. Such solution should provide intelligent, dynamic contrast control applied not only across entire image but also selectively to specific areas in order to maintain optimal visualization of observed scenery. The paper discusses problems dealing with improvement of the visibility of low-contrast objects and presents method of image enhancement. The algorithm is based on adaptive histogram equalization. The image enhancement algorithm was tested on real IR images. The algorithm significantly improves the image quality and the effectiveness of object detection for the majority of thermal images. Due to its adaptive nature it should be effective for any given thermal image. The application of such algorithm is promising alternative to more expensive opto-electronic components like improved optics and detectors.