In this paper we study the inverse Laplace transform. 
We first derive a new global logarithmic stability estimate that shows
that the inversion is severely ill-posed. Then we propose a regularization
method to compute the inverse Laplace transform using the concept of mollification.
Taking into account the exponential instability we derive a criterion for 
selection of the regularization parameter. We show that
by taking the optimal value of this parameter we improve 
significantly the convergence of the method. Finally, making use of
the holomorphic extension of the Laplace transform, we suggest a new PDEs based
numerical method for the computation of the solution. The effectiveness of the
proposed regularization method is demonstrated through several numerical examples.