The dark channel prior (DCP)-based image dehazing method has been widely used for enhancing visibility of outdoor images. However, since the DCP-based method assumes that the minimum values within local patches of natural outdoor haze-free images are zero, underestimation of the transmission is inevitable when the assumption does not hold. In this letter, a novel iterative image dehazing algorithm is proposed to compensate for the underestimated transmission. Experimental results show that the proposed method can improve the dehazing performance by increasing the transmission estimation accuracy.