This paper presents a novel technique for image restoration based on n
onlinear interpolative vector quantization (NLIVQ). The algorithm perf
orms nonlinear restoration of diffraction-limited images concurrently
with quantization. It is trained on image pairs consisting of an origi
nal image and its diffraction-limited counterpart. The discrete cosine
transform is used in the codebook design process to control complexit
y. Simulation results are presented that demonstrate improvements in v
isual quality and peak signal-to-noise ratio of the restored images.