Space-variant approaches subject to local image characteristics are useful in practical image restoration because many natural images are nonstationary. Motivated by the success of denoising approaches in the wavelet domain, we propose a region-adaptive restoration approach which adopts a wavelet denoising technique in flat regions after an under-regularized constrained least squares restoration. Experimental results verify that this approach not only improves image quality in mean square error but also contributes to ringing reduction.