Based on multi-view characteristics of plenoptic imaging, a new method for generating localized high dynamic range (LHDR) compression for plenoptic image is proposed, which determine HDR compression region, and maintains image quality for different plenoptic-views. The proposed method is realized by physically segmented sub-images through plenoptic optics. And plenoptic image with wider dynamic range is processed by calculated local contrast of combined sub-images via block based harsh environment detection, and then followed by HDR process or dynamic local contrast enhancement (DLCE) for each block. Experiment results for proposed LHDR and reference HDR are also reported, which using self-designed plenoptic camera with low distorted sub-image, 60° field of view, 1920x1080 pixels, and 90 fps 2/3" CMOS imager. The results show that the proposed method is capable of wider dynamic range compression, while preserving fine details, fewer artifacts. Extended dynamic range from 84.6 dB to 108.9 dB is realized. And processing time of proposed method is 85% compared to reference HDR processing.