Abstract: A color correction algorithm for image stitching is proposed, which is based on the statistics of the overlap areas between sub-images. The algorithm can handle the problem that there are obvious differences in hue and intensity between sub-images due to the different shooting angles, and exposure parameters in image stitching. Firstly, the original color transfer method is expressed in the form of the transformation in RGB color space with covariance matrices. Then the proposed algorithm is obtained by simplifying that method with the statistics of the overlap areas. The experimental results show that the algorithm can deal with the differences in hue and intensity between sub-images efficiently and make the composite images pleasing looking with color correction. Meanwhile the proposed algorithm is less time-consuming than the original color transfer method.