The MPEG-7 dominant color descriptor (DCD) is an effective, compact, and intuitive representation of salient colors in an image region and is very useful for contentbased image retrieval and indexing applications. However, the original quadratic histogram distance measure (QHDM) for MPEG-7 DCD similarity matching does not fit the human perception very well. It may cause incorrect ranks between regions with similar salient color distributions. In this paper, a new merged palette histogram similarity measure is proposed to provide an alternative for the QHDM. The new similarity measure is based on a merged color palette as a common color space to define histogram intersection. Experimental results show that this new similarity measure provide better accurate and perceptually relevant image retrieval for MPEG-7 DCD. Keywords--MPEG-7, Dominant Color Descriptor, Image Retrieval, Similarity Measure.