Nonuniform illumination images suffer from degenerated details because of underexposure, overexposure, or a combination of both. To improve the visual quality of color images, underexposure regions should be lightened, whereas overexposure areas need to be dimmed properly. However, discriminating between underexposure and overexposure is troublesome. Compared with traditional methods that produce a fixed demarcation value throughout an image, the proposed demarcation changes as local luminance varies, thus is suitable for manipulating complicated illumination. Based on this locally adaptive demarcation, a nonlinear modification is applied to image luminance. Further, with the modified luminance, we propose a nonlinear process to reconstruct a luminance-enhanced color image. For every pixel, this nonlinear process takes the luminance change and the original chromaticity into account, thus trying to avoid exaggerated colors at dark areas and depressed colors at highly bright regions. Finally, to improve image contrast, a local and image-dependent exponential technique is designed and applied to the RGB channels of the obtained color image. Experimental results demonstrate that our method produces good contrast and vivid color for both nonuniform illumination images and images with normal illumination. © The Authors. Published by SPIE under a Creative Commons Attribution 3.0 Unported License. Distribution or reproduction of this work in whole or in part requires full attribution of the original publication, including its DOI.