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In this paper, a smart contrast enhancement technique based on conventional histogram equalization (HE) algorithm is proposed. This dynamic histogram equalization (DHE) technique takes control over the effect of traditional HE so that it performs the enhancement of an image without making any loss of details in it. DHE partitions the image histogram based on local minima and assigns specific gray level ranges for each partition before equalizing them separately. These partitions further go though a repartitioning test to ensure the absence of any dominating portions. This method outperforms other present approaches by enhancing the contrast well without introducing severe side effects, such as washed out appearance, checkerboard effects etc., or undesirable artifacts.