Singh, HemantChellappa, Rama(Also cross-referenced as CAR-TR-700) We propose an improved shape from shading (SFS) algorithm which is an extension of the recently published algorithm by Zheng and Chellappa [13]. A markedly more accurate estimate of the azimuth of the illumination source is presented. Depth reconstructio n has been improved upon by using a new set of boundary conditions and adapting a more sophisticated technique for hierarchical implementation of the SFS algorithm. Errors at the boundaries of images and in rotation of the reconstructed images have been c orrected. Typical results on synthetic and real images are presented.en-USTechnical Report