The invention discloses a standard-definition input and high-definition output-based on-board image processing method. The method comprises image enhancement and image fusion, wherein the image enhancement comprises the following steps of: 1, inputting an RGB color image and respectively carrying out following processing on three channel images R, G and B, 2, carrying out gray stretching correction on the image, 3, calculating an overall brightness coefficient and an overall adjustment coefficient of the image, 4, dividing the image into M*M sub-block images, 5, calculating a brightness coefficient and an adjustment coefficient of each sub-block image, 6, correcting the adjustment coefficient of each sub-block image according to the overall adjustment coefficient of the image, 7, calculating an adjustment coefficient of each pixel point, and 8, adjusting the brightness of each pixel point; and the image fusion comprises the following steps of: fusing overlapped areas of two adjacent images through a weighted gradient manner, defining the two adjacent frames to be a first image and a second image, and gradually transiting from the first image to the second image in the overlapped areas through position weighted fusion so as to realize fusion of the two adjacent images.