A system and method is provided for processing a digital image. The system and method processes image data by replacing bad pixel data in the digital image. Specifically, the system and method replaces bad pixel data in the image data by comparing each pixel to selected neighboring pixels, including pixels of other colors in some cases, and determining if the pixel is likely corrupt, such as from a detective pixel. Corrupted pixels are then replaced using averages, means, maximums, or other statistical functions of select nearby pixels.