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A satellite image adaptive restoration method was developed that avoids ringing artifacts at the image boundary and retains oriented features. The method combines periodic plus smooth image decomposition with complex wavelet packet transforms. The framework first decomposes a degraded satellite image into the sum of a “periodic component” and a “smooth component”. The Bayesian method is then used to estimate the modulation transfer function degradation parameters and the noise. The periodic component is deconvoluted using complex wavelet packet transforms with the deconvolution result of the periodic component then combined with the smooth component to get the final recovered result. Tests show that this strategy effectively avoids ringing artifacts while preserving local image details (especially directional textures) without amplifying the noise. Quantitative comparisons illustrate that the results are comparable with previous methods. Another benefit is that this approach can process large satellite images with parallel processing, which is important for practical use.