The current research intends to quantify the surround luminance effects on the shape of spatial luminance CSF and to propose an image quality evaluation method that is adaptive to both surround luminance and spatial frequency of a given stimulus. The proposed image quality method extends to a model called SQRI[8]. The non-linear behaviour of the HVS was taken into account by using CSF. This model can be defined as the square root integration of multiplication between display MTF and CSF. It is assumed that image quality can be determined by considering the MTF of the imaging system and the CSF of human observers. The CSF term in the original SQRI model was replaced by the surround adaptive CSF quantified in this study and it is divided by the Fourier transform of a given stimulus. A few limitations of the current work should be addressed and revised in the future study. First, more accurate model predictions can be achievable when the actual display MTF is measured and used instead of the approximation. Then, a further improvement to the model prediction accuracy can be made when chromatic adaptation of the HVS is taken into account[45-46].