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Particle Swarm Optimization (PSO) algorithms represent a new approach for optimization. In this paper image enhancement is considered as an optimization problem and PSO is used to solve it. Image enhancement is mainly done by maximizing the information content of the enhanced image with intensity transformation function. In the present work a parameterized transformation function is used, which uses local and global information of the image. Here an objective criterion for measuring image enhancement is used which considers entropy and edge information of the image. We tried to achieve the best enhanced image according to the objective criterion by optimizing the parameters used in the transformation function with the help of PSO. Results are compared with other enhancement techniques, viz. histogram equalization, contrast stretching and genetic algorithm based image enhancement.