The retinex is a human perception based image processing algorithm which provides color constancy and dynamic range compression. The multi scale retinex with color restoration (MSRCR) has shown itself to be a very versatile automatic image enhancement algorithm that simultaneously provides dynamic range compression, color constancy, and color rendition. But the MSRCR results suffer from lower global brightness and partial color distortion. In order to improve the MSRCR method, this paper presents a modified MSRCR algorithm to Landsat-5 image enhancement considering percent liner stretch and histogram adjustment. Finally, the effect of modified MSRCR method on Landsat-5 image enhancement is analyzed and the comparison with other color adjustment methods such as gamma correction and histogram equalization is reported in the experimental results.