Abstract: Color fusion and color transfer algorithms in YUV space for dual-band monochrome video images are proposed. The real-time system based on TM1300 is built up. Two pieces of TM1300 preprocess the dual-band images, and calculate their mean and deviation respectively. In the third TM1300, the dual-band images are first fused into one primary color image(source image) in YUV space and then its components are scaled by the variation ratio of a day-time color target image to the source image. The color and luminance distribution of the target image is transferred into the source image. The algorithms are apt to real-time processing and can obtain natural color appearance similar to a day-time color image.