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A single sensor equipped with a color filter array (CFA) is used in many digital still cameras to capture any of the three primary color components, R(red), G(green) or B(blue) on each pixel location, in order to reduce the hardware cost. This single band is used to generate the true RGB image. Demosicing is the process of interpolating the missed colors, which aims to reconstruct the missing colors as close as possible by keeping the less computational complexity. In this paper a novel adaptive edge preserving, edge directed interpolating technique is proposed for color reproduction from Bayer mosaic images. The proposed algorithm aims to effectively estimate the missing G component in edge region and texture regions and the other color planes are estimated based on the interpolated value of the green plane. When the green plane is processed, for each missing green component in the CFA, the algorithm performs a gradient test, to identify edge direction and then carries out an interpolation along the direction of a smaller gradient to determine the missing green component. The variance of color differences can be used as a supplementary criterion to determine the interpolation direction for the green components. Depending on the sharpness, an adaptive weighted interpolation method is introduced. Experimental results show that the proposed method performs much better than other latest demosaicing techniques in terms of CPSNR, correlation coefficient and SSIM (structural-similarity).