We provide an efficient technique of color and luminance compensation for sequences of overlapping images. It can be used in construction of high-resolution and high-quality panoramic images even when the input images have very different colors and luminance. The technique uses color matching in the overlapping areas of source image pairs to balance colors and luminance in the whole image sequence. It performs gamma correction for the luminance component and linear correction for the chrominance components of source images in the image sequence. Compared to existing approaches, our technique is simple and efficient, yet it can avoid color saturation problems during color correction and perform color and luminance compensation globally in the whole image sequence. We apply the technique to create high-quality panoramic images on mobile phones. Categories and Subject Descriptors I [Computing Methodologies]: Computer GraphicsPicture/Image Generation Graphics Utilities; I [Computing Metho...