This paper presents a new algorithm for detection and compensation of backlight images. The proposed technique attacks the weakness of the conventional backlight image processing methods such as over-saturation, losing contrast and so on. The proposed algorithm consists of two operation phases: detection and compensation phases. In the detection phase, we use the spatial position characteristic and histogram of backlight image to obtain two image indices, which can determine the backlight degree of an image. Fuzzy logic is then used to integrate these two indices into a final backlight index determining the final backlight degree of an image precisely. Second, in the compensation phase, to solve the over-saturation problem that exists usually in conventional image compensation methods, we propose the adaptive compensation-curve scheme to compensate and enhance the brightness of backlight images. The luminance of a backlight image is adjusted according to the compensation curve, which is adapted dynamically according to the backlight degree indicated by the backlight index estimated in the detection phase. The performance of the proposed technique is tested on 100 backlight images covering various kinds of backlight conditions and degrees. The experimental and comparison results clearly show the superiority of the proposed technique.