The loss in contrast-discrimination ability of the human visual system under high ambient illumination level can cause image quality degradation in mobile phones. In this paper, we propose a perceived contrast compensation method by processing the original displayed image. With consideration that the perceived contrast significantly varies across the image, this method extracts the local band contrast from the original image; it then compensates these contrast components to counteract the perceived contrast degradation. Experimental results demonstrate that this method can maintain most contrast details even in high ambient illumination levels.