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Image restoration and segmentation are both classical problems, that are known to be difficult and have attracted major research efforts. This paper shows that the two problems are tightly coupled and can be successfully solved together. Mutual support of image restoration and segmentation processes within a joint variational framework is theoretically motivated, and validated by successful experimental results. The proposed variational method integrates semi-blind image deconvolution (parametric blur-kernel), and Mumford-Shah segmentation. The functional is formulated using the Γ-convergence approximation and is iteratively optimized via the alternate minimization method. While the major novelty of this work is in the unified treatment of the semi-blind restoration and segmentation problems, the important special case of known blur is also considered and promising results are obtained.