In digital camera systems,the color filter array (CFA) is used to sample the col ors.However,each pixel represents only one of the color bands.To produce a full -resolution color image,the recorded image must be processed to estimate the va lues of the pixels for all the other color bands.This restoration process is oft en implemented by interpolation.The interpolation algorithm for the charge-coup led device (CCD) color filter array is one of the most important factors for the quality of the restored full color images.If interpolation is not performed app ropriately,images suffer from serious visible color artifacts.There have been ma ny solutions to the problem,in order to avoid serious distortion in high frequen cy caused by bilinear interpolation and expensive computation cost caused by the interpolation using alternating projection,and the images sampled from the colo r filter array are analyzed in Fourier domain.The CFA images could be interprete d as a luminance component located in baseband and the color difference componen ts modulated in high bands.According to this,a new interpolation algorithm based on color difference modulation is proposed in this paper.Compared with some oth er algorithms,the proposed method outperforms all them,both visually and in term s color peak-signal-to-noise ratio (CPSNR) and ΔEs.