In this paper, we present a hybrid denoising algorithm dedicated to division-of-focal plane (DoFP) polarization images. The proposed algorithm, centered around the Block-Matching and 3D Filtering (BM3D) and K-times Singular Value Decomposition (KSVD) denoising algorithms, is capable of significantly enhancing the grouping step in the second round of collaborative filtering by purifying the ''Semi-Filtered'' image yielded by the first round of collaborative filtering. To achieve this, the BM3D denoising method's chain of operation is broken, and the ''Semi-Filtered'' image is passed through a round of KSVD denoising method before the second round of collaborative filtering is conducted. According to our extensive experimental results, the proposed algorithm visually outperforms the state-of-the-art BM3D denoising algorithm and a wide range of other denoising algorithms for DoFP polarization images. Quantitative results presented using Peak-Signal-to-Noise-Ratio (PSNR) and Structural Similarity Index (SSIM) Index metrics further highlight the superior performance of the proposed algorithm. INDEX TERMS Collaborative filtering, division of focal plane, hybrid denoising, image denoising, polarization image.