A technique on atmospheric correction algorithm to the multi-band reflectance of Landsat TM imagery has been developed using an atmospheric radiation transfer model for eliminating the atmospheric and surface diffusion effects. Despite the fact that the technique of satellite image processing has been continually developed, there is still a difference between the radiance value registered by satellite borne detector and the true value registered at the ground surface. Such difference is caused by atmospheric attenuations of radiance energy transfer process which is mostly associated with the presence of aerosol particles in atmospheric suspension and surface irradiance characteristics. The atmospheric reflectance depend on atmospheric optical depth and aerosol concentration, and closely related to geographical and environmental surface characteristics. Therefore, when the effects of surface diffuse and aerosol reflectance are eliminated from the satellite image, it is actually corrected from atmospheric optical conditions. The objective of this study is to develop an algorithm for making atmospheric correction in satellite image. The study is processed with the correction function which is developed for eliminating the effects of atmospheric path scattering and surface adjacent pixel spectral reflectance within an atmospheric radiation model. The diffused radiance of adjacent pixel in the image obtained from accounting the average reflectance in the $7{ imes}7$ neighbourhood pixels and using the land cover classification. The atmospheric correction functions are provided by a radiation transfer model of LOWTRAN 7 based on the actual atmospheric soundings over the Korean atmospheric complexity. The model produce the upward radiances of satellite spectral image for a given surface reflectance and aerosol optical thickness.