Anette Gottfridsson David Grimfors Titel: Demosaicing with simultaneous noise reduction Abstract: Digital images are represented as colour triplets, eg. RGB (red, green, blue), but digital camera sensors usually capture only one colour in each pixel. In addition, the image is corrupted by noise. The unknown colours in each pixel are interpolated in a process called demosaicing, sometimes followed by noise reduction. It is however also possible to perform the noise reduction before or simultaneously with the demosaicing, though this is seldom done today. In this report we have evaluated these possibilities with focus on algorithms suitable for real time hardware implementation in digital video cameras. We will develop a simple yet effective noise reduction method for use before demosaicing, and a very powerful although fairly complex method for performing both operations simultaneously using Gaussian Markov Random Fields (GMRF) where we have used an adaptive neighbourhood structure and incorporated colour correlations. We have used overlapping image patches to speed up execution and we will show that local image variance is a simple and efficient way to estimate model parameters. In practice, noise reduction is a tradeoff between leaving noise and losing detail. We will finish by discussing noise models to help adjusting this balance and conclude that accurate noise estimations are important, especially for advanced noise reduction methods. We will conclude that all three orders of procedure have advantages and disadvantages, but for the case of built-in noise reduction in real time video we find the first approach to be most promising.