In this work we discuss an efficient strategy for reducing the negative impact of non-uniform illumination to panoramic image quality by proposing an adaptive correction algorithm based on the improved Bilateral Gamma function. Firstly the illumination component is extracted by a fast image guided filter. Then an improved bilateral Gamma function fed by the distribution characteristics of illumination is modelled. Finally the non-uniform illumination panoramic image is adjusted adaptively by the devised algorithm, which can increase the intensity value at low illumination regions, and vice versa in the high illumination regions in a panoramic image. Experimental results show that the proposed algorithm can reduce the negative impact caused by the non-uniformity of illumination conditions and enhance the visual quality across different imaging scenarios.