This paper proposes a novel method to correct saturated pixels in images. This method is based on the YCbCr color space and separately corrects the chrominance and the luminance of saturated pixels. In this algorithm, the saturated image is processed on the scan line, which is beneficial to the hardware implementation and the correction effect is good. Through the results of the joint simulation of MATLAB and Modelsim, it can be concluded that the hardware algorithm of this paper can use less resources to achieve fast correction. This paper uses Altera DE4 high-level development platform for hardware implementation. The calculation results show that highspeed image and video processing by FPGA is feasible and efficient, and it can be done frame by frame for highdefinition video. It has broad practical application prospects.