A method of colour saturation compensation in a video signal is disclosed. The method includes the steps of: processing a luminance signal component of the video signal; determining whether the processing of the luminance signal results in a change in chrominance saturation; if the step of determining reveals that the chrominance saturation has changed, applying a chrominance compensation signal to the chrominance signals to counteract the effects of chrominance saturation, wherein said step of applying a compensation signal include the steps of: generating a compensation signal which is dependent on hue and luminance ratio (output luminance signal / input luminance signal). Apparatus for performing the method is also disclosed.