In this paper, we propose a method that infers both accurate depth maps and color-consistent stereo images for radiometrically varying stereo images. In general, stereo matching and performing color consistency between stereo images are a chicken-and-egg problem since it is not a trivial task to simultaneously achieve both goals. Hence, we have developed an iterative framework in which these two processes can boost each other. First, we transform the input color images to log-chromaticity color space, from which a linear relationship can be established during constructing a joint pdf of transformed left and right color images. From this joint pdf, we can estimate a linear function that relates the corresponding pixels in stereo images. Based on this linear property, we present a new stereo matching cost by combining Mutual Information (MI), SIFT descriptor, and segment-based plane-fitting to robustly find correspondence for stereo image pairs which undergo radiometric variations. Meanwhile, we devise a Stereo Color Histogram Equalization (SCHE) method to produce color-consistent stereo image pairs, which conversely boost the disparity map estimation. Experimental results show that our method produces both accurate depth maps and color-consistent stereo images, even for stereo images with severe radiometric differences.