A panoramic high-dynamic range (HDR) image method and system of combining multiple images having different exposures and at least partial spatial overlap wherein each of the images may have scene motion, camera motion, or both. The major part of the panoramic HDR image method and system is a two-pass optimization-based approach that first defines the position of the objects in a scene and then fills in the dynamic range when possible and consistent. Data costs are created to encourage radiance values that are both consistent with object placement (defined by the first pass) and of a higher signal-to-noise ratio. Seam costs are used to ensure that transitions occur in regions of consistent radiances. The result is a high-quality panoramic HDR image having the full available spatial extent of the scene along with the full available exposure range.

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