An automatic contrast limiting circuit and method thereof with spatial domain infinite impulse response filter are disclosed. A spatial domain infinite impulse response filter is adapted to generate an output value of the spatial domain infinite impulse response filter related to an input signal. A peak value detector is adapted to detect the peak output value of the spatial domain infinite impulse response filter during a predetermined recording interval. A contrast evaluator is used to evaluate the required contrast value referring to a predetermined threshold value and the output value of the spatial domain infinite impulse response filter.