Image blur and noise are difficult to avoid in many situations and can often ruin a photograph. We present a novel image deconvolution algorithm that deblurs and denoises an image given a known shift-invariant blur kernel. Our algorithm uses local color statistics derived from the image as a constraint in a unified framework that can be used for deblurring, denoising, and upsampling. A pixel’s color is required to be a linear combination of the two most prevalent colors within a neighborhood of the pixel. This two-color prior has two major benefits: it is tuned to the content of the particular image and it serves to decouple edge sharpness from edge strength. Our unified algorithm for deblurring and denoising out-performs previous methods that are specialized for these individual applications. We demonstrate this with both qualitative results and extensive quantitative comparisons that show that we can out-perform previous methods by approximately 1 to 3 DB.