A method using Infrared Imaging Polarimetry for detecting the presence of foreign fluids on water comprises estimating an expected polarization response for a foreign fluid desired to be detected. Oil from an oil spill is one such foreign fluid. An optimal position of a polarimeter to take images of the water's surface is determined from the expected polarization response. The polarimeter is positioned at the optimal position and records raw image data of the water's surface to obtain polarized images of the area. The polarized images are corrected, and IR and polarization data products are computed. The IR and polarization data products are converted to multi-dimensional data set to form multi-dimensional imagery. Contrast algorithms are applied to the multi-dimensional imagery to form enhanced contrast images, from which foreign fluids can be automatically detected.