This paper describes the digital estimation of the Point Spread Function (PSF) of an out-of-focus lens and the restoration of the defocussed images. It is shown that the power cepstrum of the image provides a successful estimation of the PSF. Two techniques, namely, digital processing and digital-analog one are employed to restore the degraded images by means of spatial frequency filtering. Brief comparisons are made between these different techniques. The applicability of two types of filters, Wiener and homomorphic filters, is also demonstrated experimentally.