We present a method for image interpolation which is able to create high-quality, perceptually convincing transitions between recorded images. By implementing concepts derived from human vision, the problem of a physically correct image interpolation is relaxed to an image interpolation that is perceived as physically correct by human observers. We find that it suffices to focus on exact edge correspondences, homogeneous regions and coherent motion to compute such solutions. In our user study we confirm the visual quality of the proposed image interpolation approach. We show how each aspect of our approach increases the perceived quality of the interpolation results, compare the results obtained by other methods and investigate the achieved quality for different types of scenes. CR Categories: I.3.3 [Computer Graphics]: Picture/Image Generation--Viewing algorithms I.4.8 [Image Processing and Computer Vision]: Scene Analysis--Motion, Tracking, Shading, Time-varying Imagery