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Single sensor digital color still/video cameras capture images using a color filter array (CFA) and require color interpolation (demosaicking) to reconstruct full color images. The color reproduction has to combat sensor noises which are channel dependent. If untreated in demosaicking, sensor noises can cause color artifacts that are hard to remove later by a separate denoising process, because the demosaicking process complicates the noise characteristics by blending noises of different color channels. This paper presents a joint demosaicking-denoising approach to overcome this difficulty. The color image is restored from noisy mosaic data in two steps. First, the difference signals of color channels are estimated by linear minimum mean square-error estimation. This process exploits both spectral and spatial correlations to simultaneously suppress sensor noise and interpolation error. With the estimated difference signals, the full resolution green channel is recovered. The second step involves in a wavelet-based denoising process to remove the CFA channel-dependent noises from the reconstructed green channel. The red and blue channels are subsequently recovered. Simulated and real CFA mosaic data are used to evaluate the performance of the proposed joint demosaicking-denoising scheme and compare it with many recently developed sophisticated demosaicking and denoising schemes.