AVI (Automatic Vision Inspection) systems automatically detect defect features and measure their sizes via camera vision. Defect detection is not an easy process because of noises from various sources and optical distortion. In this paper the acquired images from a TFT panel are enhanced with the adoption of an HVS (Human Visual System). A human visual system is more sensitive on the defect area than the illumination components because it has greater sensitivity to variations of intensity. In this paper we modified an MTF (Modulation Transfer Function) in the Wavelet domain and utilized the characteristics of an HVS. The proposed algorithm flattens the inner illumination components while preserving the defect information intact.