This thesis develops novel techniques that can solve some image enhancement problems using theoretically and technically proven and very useful mathematical tools to image processing such as wavelet transforms, partial differential equations, and variational models. Three subtopics are mainly covered. First, color image denoising framework is introduced to achieve high quality denoising results by considering correlations between color components while existing denoising approaches can be plugged in flexibly. Second, a new and efficient framework for image contrast and color enhancement in the compressed wavelet domain is proposed. The proposed approach is capable of enhancing both global and local contrast and brightness as well as preserving color consistency. The framework does not require inverse transform for image enhancement since linear scale factors are directly applied to both scaling and wavelet coefficients in the compressed domain, which results in high computational efficiency. Also contaminated noise in the image can be efficiently reduced by introducing wavelet shrinkage terms adaptively in different scales. The proposed method is able to enhance a wavelet-coded image computationally efficiently with high image quality and less noise or other artifact. The experimental results show that the proposed method produces encouraging results both visually and numerically compared to some existing approaches. Finally, image inpainting problem is discussed. Literature review, psychological analysis, and challenges on image inpainting problem and related topics are described. An inpainting algorithm using energy minimization and texture mapping is proposed. Mumford-Shah energy minimization model detects and preserves edges in the inpainting domain by detecting both the main structure and the detailed edges. This approach utilizes faster hierarchical level set method and guarantees convergence independent of initial conditions. The estimated segmentation results in the inpainting domain are stored in segmentation map, which is referred by a texture mapping algorithm for filling textured regions. We also propose an inpainting algorithm using wavelet transform that can expect better global structure estimation of the unknown region in addition to shape and texture properties since wavelet transforms have been used for various image analysis problems due to its nice multi-resolution properties and decoupling characteristics.