In this work, we propose a novel pipeline method for laser line extraction from images with a polarization image sensor. The proposed method is specifically developed for strong laser beam reflections from metal surfaces. For the preprocessing stage, we propose a demosaicing algorithm for color polarizer filter array (CPFA) sensors. This can be implemented by using either one-quarter or full resolution of the sensor. In addition, we propose two methods for optimizing the information available in a 12-channel color polarization image. The first method is based on the minimum linearly polarized irradiance, and the second method is based on the linear polarization intensity. These preprocessing and optimization methods are combined with laser line extraction methods. The laser line extraction is done with either the polarized finite impulse response (FIR) center of gravity (COG), where the laser line coordinates are computed from the filtered laser intensity distribution, or with the polarized FIR-Peak, where the laser line coordinates are calculated from the first derivative of the filtered laser signal. The performance of the proposed algorithms is studied experimentally using a laser line scanner assembly, made of a polarization camera, and a laser line projector operating in the blue wavelength range.